507 Wisteria St

Oak Point, TX 75068

$618,035F

4 bd · 4.5 ba · 2,596 sqft · Built 2026 · Land · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,410/mo
• Mortgage (P&I): −$3,241
• Tax + insurance: −$1,030
• HOA: −$104
• Vac / Maint / Mgmt: −$716
• Net cashflow: $-1,681/mo
• Annual: $-20,173/yr
• Cap rate: 3.03%
• Cash-on-cash: -11.66%
• DSCR: 0.48
• 1% rule: 0.55%
• Cash to close: $173,050

Investor read

• This is a 4-bed/4.5-bath land listed at $618k.
• At list price, monthly cash flow is $-2k ($-20k/yr) — negative.
• To cash-flow at today's rent, offer at most $375k (39.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $341k (44.8% below list).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $341k (44.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#887 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: cost of living D+, amenities F, commute F.
• Little Elm ISD (suburban): math 36% / reading 42% proficiency, ranked #327 of 826 in TX (top 40%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Oak Point El (math 26% / reading 34%, grade F, #2,500 of 4,322 statewide, top 58%, 952 students, 49% FRL); Little Elm H S (math 28% / reading 49%, grade F, #866 of 1,632 statewide, top 54%, 2,514 students, 52% FRL).
• Market conditions: Rents soft (-1.5%/yr); 1318 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals at typical pace (median 24d 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.
• 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.
• This rent runs 32% of the median local income ($127k/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?
• 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.
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.