5309 Archeron Ave

Celina, TX 76227

$479,990D

4 bd · 3.0 ba · 3,043 sqft · Built 2025 · SingleFamily · Pending · 266 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,587/mo
• Mortgage (P&I): −$2,517
• Tax + insurance: −$800
• HOA: −$46
• Vac / Maint / Mgmt: −$753
• Net cashflow: $-530/mo
• Annual: $-6,356/yr
• Cap rate: 4.97%
• Cash-on-cash: -4.73%
• DSCR: 0.79
• 1% rule: 0.75%
• Cash to close: $134,397

Investor read

• This is a 4-bed/3.0-bath single-family listed at $480k.
• At list price, monthly cash flow is $-530 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $403k (16.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $359k (25.3% below list).
• It's been on market 266 days — a 12% lower offer ($422k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $359k (25.3% 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 $14k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#450 in TX) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A; Watch: cost of living C-, amenities F, commute F.
• Prosper ISD (rural): math 58% / reading 60% proficiency, ranked #33 of 826 in TX (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Light Farms El (math 51% / reading 53%, grade C-, #742 of 4,322 statewide, top 19%, 940 students, 3% FRL); Lorene Rogers Middle (math 70% / reading 68%, grade A, #69 of 1,662 statewide, top 4%, 1,430 students, 0% FRL); Prosper H S (math 60% / reading 75%, grade B, #158 of 1,632 statewide, top 10%, 3,769 students, 0% FRL).
• Market conditions: Rents soft (-1.9%/yr); 1934 active listings in the ZIP; 30 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 10,531 units permitted in Denton County in 2024 (2,713 in 5+ unit buildings).
• Denton County population projected at +66% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts; this cycle's ask has dropped $125k (21%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.0% vs local median 2.8% in Celina — 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 39% of the median local income ($111k/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 266 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 A-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.