734 Bluebonnet Dr

Keller, TX 76248

$785,000D

8 bd · 4.0 ba · 4,232 sqft · Built 1984 · MultiFamily · Active · 90 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,474/mo
• Mortgage (P&I): −$4,117
• Tax + insurance: −$1,104
• HOA: −$0
• Vac / Maint / Mgmt: −$1,360
• Net cashflow: $-106/mo
• Annual: $-1,268/yr
• Cap rate: 6.13%
• Cash-on-cash: -0.58%
• DSCR: 0.97
• 1% rule: 0.82%
• Cash to close: $219,800

Investor read

• This is a 4 × 2-bed/2.0-bath units multifamily listed at $785k.
• At list price, monthly cash flow is $-106 ($-1k/yr) — negative. Per door: $-26/mo.
• To cash-flow at today's rent, offer at most $766k (2.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $647k (17.5% below list).
• It's been on market 90 days — a 6% lower offer ($738k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $647k (17.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $24k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#15 in TX, #1,130 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, employment A+; Watch: commute F, cost of living F.
• Keller ISD (urban): math 50% / reading 54% proficiency, ranked #91 of 826 in TX (top 11%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Keller-Harvel El (math 57% / reading 52%, grade C, #621 of 4,322 statewide, top 15%, 484 students, 28% FRL); Keller Middle (math 68% / reading 70%, grade A, #69 of 1,662 statewide, top 4%, 921 students, 10% FRL); Keller H S (math 68% / reading 83%, grade A-, #78 of 1,632 statewide, top 5%, 3,089 students, 8% FRL) — zoned schools at 15% FRL track the district average.
• Zoned-school proficiency averages 66% at this address vs 52% district-wide (+14 pts) — the actual schools serving this property are materially stronger than the Keller ISD average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents rising (+2.1%/yr); 250 active listings in the ZIP; high-income renter base; 18,938 units permitted in Tarrant County in 2024 (8,336 in 5+ unit buildings).
• Tarrant County population projected at +41% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 21y ago; this cycle's ask is 5% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Climate carrying-cost: extreme-heat days projected 7→25/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.1% vs local median 2.4% in Keller — 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.
• At $6,474/mo this rent would consume 45% of the median local household income ($172k/yr) (locally 816% of renters already pay >50% of income on rent) — 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 90 days. Have you received any prior offers? Is the seller open to a 18% 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?
• 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?