1293 S 3rd St

South Alamo, TX 78516

$185,900D-

3 bd · 3.0 ba · 1,146 sqft · Built 2023 · SingleFamily · Active · 510 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,480/mo
• Mortgage (P&I): −$975
• Tax + insurance: −$310
• HOA: −$0
• Vac / Maint / Mgmt: −$311
• Net cashflow: $-116/mo
• Annual: $-1,388/yr
• Cap rate: 5.55%
• Cash-on-cash: -2.67%
• DSCR: 0.88
• 1% rule: 0.80%
• Cash to close: $52,052

Investor read

• This is a 3-bed/3.0-bath single-family listed at $186k.
• At list price, monthly cash flow is $-116 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $169k (9.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $148k (20.4% below list).
• It's been on market 510 days — a 12% lower offer ($164k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $148k (20.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 56/100 on livability (#1,320 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+, crime B; Watch: amenities F, commute F, employment F.
• Donna ISD (suburban): math 11% / reading 18% proficiency, ranked #821 of 826 in TX (top 99%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: M Rivas Pri Discovery Academy (math 12% / reading 17%, grade F, #4,048 of 4,322 statewide, top 95%, 349 students, 93% FRL); A P Solis Middle (math 8% / reading 19%, grade F, #1,602 of 1,662 statewide, top 97%, 666 students, 93% FRL); Donna H S (math 16% / reading 21%, grade F, #1,436 of 1,632 statewide, top 88%, 2,095 students, 92% FRL) — zoned schools average 93% FRL vs 48% district-wide (44 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 349 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 7,378 units permitted in Hidalgo County in 2024 (641 in 5+ unit buildings).
• Hidalgo County population projected at +28% 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.
• This rent runs 33% of the median local income ($53k/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?
• It's been on market 510 days. Have you received any prior offers? Is the seller open to a 20% 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.