Baja Plan

Providence Village, TX 76227

$224,999F

3 bd · 2.5 ba · 1,189 sqft · Built — · SingleFamily · Active · 656 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,894/mo
• Mortgage (P&I): −$1,562
• Tax + insurance: −$497
• HOA: −$0
• Vac / Maint / Mgmt: −$398
• Net cashflow: $-563/mo
• Annual: $-6,756/yr
• Cap rate: 4.03%
• Cash-on-cash: -8.10%
• DSCR: 0.64
• 1% rule: 0.64%
• Cash to close: $83,419

Investor read

• This is a 3-bed/2.5-bath single-family listed at $225k. Condition is rated excellent.
• At list price, monthly cash flow is $-563 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $216k (3.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $189k (15.8% below list).
• It's been on market 656 days — a 12% lower offer ($198k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $189k (15.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#567 in TX) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime B+; Watch: amenities F, commute F, health & safety F.
• Aubrey ISD (rural): math 50% / reading 52% proficiency, ranked #119 of 826 in TX (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: James A Monaco (math 53% / reading 59%, grade C+, #574 of 4,322 statewide, top 14%, 537 students, 36% FRL); Aubrey Middle (math 48% / reading 46%, grade D+, #424 of 1,662 statewide, top 27%, 814 students, 34% FRL); Aubrey H S (math 45% / reading 57%, grade D+, #482 of 1,632 statewide, top 30%, 923 students, 29% FRL).
• Market conditions: Rents soft (-1.9%/yr); 2643 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 95d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 82% 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 since 2y ago 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.

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 656 days. Have you received any prior offers? Is the seller open to a 16% 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 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.
• 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.