3741 Toronto St

Dallas, TX 75212

$440,000D-

4 bd · 3.0 ba · 2,724 sqft · Built 2021 · SingleFamily · Active · 79 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,835/mo
• Mortgage (P&I): −$2,307
• Tax + insurance: −$1,152
• HOA: −$0
• Vac / Maint / Mgmt: −$595
• Net cashflow: $-1,219/mo
• Annual: $-14,632/yr
• Cap rate: 2.97%
• Cash-on-cash: -11.88%
• DSCR: 0.47
• 1% rule: 0.64%
• Cash to close: $123,200

Investor read

• This is a 4-bed/3.0-bath single-family listed at $440k. Condition is rated excellent.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative.
• To cash-flow at today's rent, offer at most $232k (47.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $284k (35.6% below list).
• It's been on market 79 days — a 6% lower offer ($414k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $232k (47.2% below list) — sets the bar for cash-flow.
• In year one you build about $47k of equity ($3k loan paydown + $44k appreciation (10.0% local appreciation)).
• Location reads 81/100 on livability (#24 in TX, #1,380 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+; Watch: crime F.
• Dallas ISD (urban): math 31% / reading 36% proficiency, ranked #559 of 826 in TX (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 83% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: D A Hulcy Steam Middle (math 33% / reading 32%, grade F, #947 of 1,662 statewide, top 58%, 423 students, 88% FRL); L G Pinkston H S (math 10% / reading 21%, grade F, #1,505 of 1,632 statewide, top 92%, 1,139 students, 92% FRL).
• Watch-outs: property tax is 2.6% of price.
• Market conditions: Rents falling (-4.2%/yr); 312 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals lingering (median 72d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 75% of comp listings sitting > 30 days — soft ceiling on asking rent; 12,577 units permitted in Dallas County in 2024 (6,829 in 5+ unit buildings).
• Dallas County population projected at +35% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 6y ago; this cycle's ask has dropped $35k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$76k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.0% vs local median 2.3% in Dallas — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• At $2,835/mo this rent would consume 57% of the median local household income ($60k/yr) — very limited rent-growth headroom before tenants either downsize or default.

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 79 days. Have you received any prior offers? Is the seller open to a 47% concession, seller financing, or rate buy-down credit?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.
• 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.