2003 Old West Pl

Round Rock, TX 78681

$365,000D

4 bd · 4.0 ba · 1,645 sqft · Built 1982 · MultiFamily · Pending · 32 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,895/mo
• Mortgage (P&I): −$1,914
• Tax + insurance: −$704
• HOA: −$0
• Vac / Maint / Mgmt: −$608
• Net cashflow: $-331/mo
• Annual: $-3,974/yr
• Cap rate: 5.20%
• Cash-on-cash: -3.89%
• DSCR: 0.83
• 1% rule: 0.79%
• Cash to close: $102,200

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $365k.
• At list price, monthly cash flow is $-331 ($-4k/yr) — negative. Per door: $-166/mo.
• To cash-flow at today's rent, offer at most $307k (16.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $290k (20.7% below list).
• It's been on market 32 days — a 3% lower offer ($354k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $290k (20.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#56 in TX, #2,184 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, health & safety A+; Watch: amenities D-, commute F.
• Round Rock ISD (urban): math 51% / reading 59% proficiency, ranked #86 of 826 in TX (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Bluebonnet El (math 12% / reading 17%, grade F, #4,048 of 4,322 statewide, top 95%, 379 students, 76% FRL); Chisholm Trail Middle (math 41% / reading 47%, grade D, #512 of 1,662 statewide, top 32%, 688 students, 36% FRL); Round Rock H S (math 63% / reading 80%, grade B+, #111 of 1,632 statewide, top 7%, 3,773 students, 13% FRL) — zoned schools average 42% FRL vs 26% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents soft (-0.7%/yr); 304 active listings in the ZIP; 29 comparable units currently listed for rent nearby; rentals leasing fast (median 13d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 7,543 units permitted in Williamson County in 2024 (1,425 in 5+ unit buildings).
• Williamson County population projected at +69% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 7y ago; this cycle's ask has dropped $35k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: major wind risk, 70% chance of damaging wind over 30y; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.2% vs local median 2.7% in Round Rock — 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.

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 32 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.