1848 Jasmine June

Mesquite, TX 75181

$420,450D

5 bd · 3.0 ba · 2,545 sqft · Built 2025 · SingleFamily · Active · 373 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,322/mo
• Mortgage (P&I): −$2,205
• Tax + insurance: −$701
• HOA: −$208
• Vac / Maint / Mgmt: −$698
• Net cashflow: $-489/mo
• Annual: $-5,867/yr
• Cap rate: 4.90%
• Cash-on-cash: -4.98%
• DSCR: 0.78
• 1% rule: 0.79%
• Cash to close: $117,726

Investor read

• This is a 5-bed/3.0-bath single-family listed at $420k. Condition is rated good.
• At list price, monthly cash flow is $-489 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $350k (16.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $332k (21.0% below list).
• It's been on market 373 days — a 12% lower offer ($370k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $332k (21.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#358 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A-; Watch: crime F, commute F.
• Mesquite ISD (suburban): math 35% / reading 32% proficiency, ranked #536 of 826 in TX (top 65%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Gentry El (math 34% / reading 40%, grade F, #1,769 of 4,322 statewide, top 44%, 637 students, 79% FRL); Berry Middle (math 45% / reading 41%, grade D-, #540 of 1,662 statewide, top 33%, 579 students, 76% FRL); Horn H S (math 41% / reading 36%, grade F, #866 of 1,632 statewide, top 54%, 3,029 students, 74% FRL).
• Market conditions: Rents flat; 683 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals lingering (median 49d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 64% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 12,577 units permitted in Dallas County in 2024 (6,829 in 5+ unit buildings).
• Dallas County population projected at +35% 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 36% of the median local income ($111k/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 373 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• 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.