Model 3 Plan

Los Fresnos, TX 78566

$272,000F

3 bd · 2.5 ba · 1,690 sqft · Built — · SingleFamily · Active · 93 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,717/mo
• Mortgage (P&I): −$1,740
• Tax + insurance: −$553
• HOA: −$0
• Vac / Maint / Mgmt: −$361
• Net cashflow: $-936/mo
• Annual: $-11,231/yr
• Cap rate: 2.91%
• Cash-on-cash: -12.09%
• DSCR: 0.46
• 1% rule: 0.52%
• Cash to close: $92,890

Investor read

• This is a 3-bed/2.5-bath single-family listed at $272k.
• At list price, monthly cash flow is $-936 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $196k (27.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $172k (36.9% below list).
• It's been on market 93 days — a 9% lower offer ($248k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $172k (36.9% below list) — sets the bar for 1% rule.
• In year one you build about $21k of equity ($2k loan paydown + $19k appreciation (5.8% local appreciation)).
• Location reads 71/100 on livability (#327 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools D+, employment D, crime F.
• Los Fresnos CISD (suburban): math 34% / reading 44% proficiency, ranked #444 of 826 in TX (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 231 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 57% of comp listings sitting > 30 days — soft ceiling on asking rent; 2,326 units permitted in Cameron County in 2024 (503 in 5+ unit buildings).
• Cameron County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• By year 2, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 93 days. Have you received any prior offers? Is the seller open to a 37% 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.