600A 10th

Bandera, TX 78003

$475,000D-

4 bd · 3.0 ba · 2,356 sqft · Built 2026 · MultiFamily · Active · 135 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,400/mo
• Mortgage (P&I): −$2,491
• Tax + insurance: −$792
• HOA: −$0
• Vac / Maint / Mgmt: −$714
• Net cashflow: $-597/mo
• Annual: $-7,159/yr
• Cap rate: 4.79%
• Cash-on-cash: -5.38%
• DSCR: 0.76
• 1% rule: 0.72%
• Cash to close: $133,000

Investor read

• This is a 2 × 2-bed/1.5-bath units multifamily listed at $475k.
• At list price, monthly cash flow is $-597 ($-7k/yr) — negative. Per door: $-298/mo.
• To cash-flow at today's rent, offer at most $389k (18.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $340k (28.4% below list).
• It's been on market 135 days — a 12% lower offer ($418k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $340k (28.4% 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 $14k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#209 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, crime A; Watch: schools D-, commute F, employment D-.
• Bandera ISD (rural): math 30% / reading 41% proficiency, ranked #500 of 826 in TX (top 60%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 531 active listings in the ZIP; 6 units permitted in Bandera County in 2024 (0 in 5+ unit buildings).
• Cap rate 4.8% vs local median 1.4% in Bandera — 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.

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 135 days. Have you received any prior offers? Is the seller open to a 28% 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?
• 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?
• 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?