425 Parkside Dr

Argyle, TX 76226

$344,900D-

3 bd · 2.5 ba · 2,004 sqft · Built 2023 · Townhouse · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,849/mo
• Mortgage (P&I): −$1,809
• Tax + insurance: −$905
• HOA: −$225
• Vac / Maint / Mgmt: −$598
• Net cashflow: $-688/mo
• Annual: $-8,255/yr
• Cap rate: 3.90%
• Cash-on-cash: -8.55%
• DSCR: 0.62
• 1% rule: 0.83%
• Cash to close: $96,572

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $345k. Condition is rated good.
• At list price, monthly cash flow is $-688 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $223k (35.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $285k (17.4% below list).
• It's been on market 16 days — a 2% lower offer ($340k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $223k (35.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#658 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Argyle ISD (rural): math 71% / reading 67% proficiency, ranked #8 of 826 in TX (top 1%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 13% free/reduced lunch — higher-income household profile.
• Zoned schools: Argyle West (math 66% / reading 65%, grade B+, #234 of 4,322 statewide, top 6%, 845 students, 4% FRL); Argyle Middle (math 73% / reading 63%, grade A-, #73 of 1,662 statewide, top 5%, 1,168 students, 0% FRL); Argyle H S (math 75% / reading 86%, grade A, #36 of 1,632 statewide, top 2%, 1,477 students, 0% FRL).
• Watch-outs: property tax is 2.6% of price.
• Market conditions: Rents rising (+1.6%/yr); 1339 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 36d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 58% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.9% vs local median 2.9% in Argyle — 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?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.