VM28483M Plan

Donna, TX 78537

$109,900F

3 bd · 2.0 ba · 1,294 sqft · Built — · Manufactured · Active · 831 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $937/mo
• Mortgage (P&I): −$667
• Tax + insurance: −$212
• HOA: −$0
• Vac / Maint / Mgmt: −$197
• Net cashflow: $-139/mo
• Annual: $-1,662/yr
• Cap rate: 4.99%
• Cash-on-cash: -4.67%
• DSCR: 0.79
• 1% rule: 0.74%
• Cash to close: $35,597

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $110k. Condition is rated good.
• At list price, monthly cash flow is $-139 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $107k (2.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $94k (14.8% below list).
• It's been on market 831 days — a 12% lower offer ($97k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $94k (14.8% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($879 loan paydown + $13k appreciation (10.0% local appreciation)).
• Location reads 54/100 on livability (#1,411 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A; Watch: crime F, amenities F, commute F.
• Donna ISD (suburban): math 11% / reading 18% proficiency, ranked #821 of 826 in TX (top 99%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: T Price El (math 12% / reading 22%, grade F, #3,836 of 4,322 statewide, top 91%, 417 students, 97% FRL); W A Todd Middle (math 9% / reading 22%, grade F, #1,556 of 1,662 statewide, top 94%, 693 students, 92% FRL); Donna H S (math 16% / reading 21%, grade F, #1,436 of 1,632 statewide, top 88%, 2,095 students, 92% FRL) — zoned schools average 94% FRL vs 48% district-wide (45 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 569 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 30d on market — plan ~3-4 weeks tenant-placement turnaround); 48% of comp listings sitting > 30 days — soft ceiling on asking rent; lower-income renter base — watch delinquency; 7,378 units permitted in Hidalgo County in 2024 (641 in 5+ unit buildings).
• Hidalgo County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 3, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.0% vs local median 3.3% in Donna — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• This rent runs 31% of the median local income ($36k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 831 days. Have you received any prior offers? Is the seller open to a 15% concession, seller financing, or rate buy-down credit?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.