3704 Ventura Ave

McAllen, TX 78504

$560,000D

12 bd · 8.0 ba · — sqft · Built 2025 · MultiFamily · Active · 531 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,304/mo
• Mortgage (P&I): −$2,937
• Tax + insurance: −$933
• HOA: −$54
• Vac / Maint / Mgmt: −$1,114
• Net cashflow: $266/mo
• Annual: $3,194/yr
• Cap rate: 6.86%
• Cash-on-cash: 2.04%
• DSCR: 1.09
• 1% rule: 0.95%
• Cash to close: $156,800

Investor read

• This is a 4 × 3-bed/2.0-bath units multifamily listed at $560k. Condition is rated excellent.
• At list price, monthly cash flow is $266 ($3k/yr) — positive. Per door: $67/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $530k (5.3% below list).
• It's been on market 531 days — a 12% lower offer ($493k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $493k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#119 in TX, #3,771 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, amenities F, commute F.
• Edinburg CISD (urban): math 20% / reading 34% proficiency, ranked #699 of 826 in TX (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Anne L Magee El (math 22% / reading 37%, grade F, #2,525 of 4,322 statewide, top 62%, 450 students, 78% FRL); Elias Longoria Sr Middle (math 16% / reading 35%, grade F, #1,236 of 1,662 statewide, top 76%, 804 students, 82% FRL); Robert R Vela H S (math 27% / reading 48%, grade F, #888 of 1,632 statewide, top 55%, 2,189 students, 62% FRL).
• Market conditions: Rents rising (+2.6%/yr); 898 active listings in the ZIP; solid renter incomes; 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 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.
• Cap rate 6.9% vs local median 3.7% in McAllen — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• At $5,304/mo this rent would consume 78% of the median local household income ($82k/yr) (locally 1468% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 531 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?