Azalea Plan

Mesquite, TX 75149

$276,990F

3 bd · 2.0 ba · 1,510 sqft · Built — · SingleFamily · Active · 532 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,261/mo
• Mortgage (P&I): −$1,633
• Tax + insurance: −$519
• HOA: −$0
• Vac / Maint / Mgmt: −$475
• Net cashflow: $-366/mo
• Annual: $-4,389/yr
• Cap rate: 4.88%
• Cash-on-cash: -5.03%
• DSCR: 0.78
• 1% rule: 0.73%
• Cash to close: $87,186

Investor read

• This is a 3-bed/2.0-bath single-family listed at $277k.
• At list price, monthly cash flow is $-366 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $258k (6.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $226k (18.4% below list).
• It's been on market 532 days — a 12% lower offer ($244k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $226k (18.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k 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: Smith El (math 26% / reading 32%, grade F, #2,668 of 4,322 statewide, top 63%, 582 students, 76% 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; 345 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• This rent runs 38% of the median local income ($71k/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 532 days. Have you received any prior offers? Is the seller open to a 18% 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.
• 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.
• 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.