503 E 6th St

Dallas, TX 75203

$574,900C-

1 bd · 1.0 ba · 2,785 sqft · Built 1921 · MultiFamily · Active · 128 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,633/mo
• Mortgage (P&I): −$3,015
• Tax + insurance: −$927
• HOA: −$0
• Vac / Maint / Mgmt: −$973
• Net cashflow: $-282/mo
• Annual: $-3,379/yr
• Cap rate: 5.71%
• Cash-on-cash: -2.10%
• DSCR: 0.91
• 1% rule: 0.81%
• Cash to close: $160,972

Investor read

• This is a 3 × 2-bed/1.0-bath units multifamily listed at $575k. Condition is rated fair.
• At list price, monthly cash flow is $-282 ($-3k/yr) — negative. Per door: $-94/mo.
• To cash-flow at today's rent, offer at most $525k (8.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $463k (19.4% below list).
• It's been on market 128 days — a 12% lower offer ($506k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $463k (19.4% below list) — sets the bar for 1% rule.
• In year one you build about $61k of equity ($4k loan paydown + $57k appreciation (10.0% local appreciation)).
• Location reads 81/100 on livability (#24 in TX, #1,380 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+; Watch: crime F.
• Dallas ISD (urban): math 31% / reading 36% proficiency, ranked #559 of 826 in TX (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 83% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: James Bowie El (math 37% / reading 47%, grade F, #1,335 of 4,322 statewide, top 33%, 345 students, 96% FRL); Hector P Garcia Middle (math 15% / reading 27%, grade F, #1,387 of 1,662 statewide, top 85%, 595 students, 95% FRL); W H Adamson H S (math 30% / reading 31%, grade F, #1,085 of 1,632 statewide, top 67%, 1,482 students, 96% FRL).
• Watch-outs: built in 1921 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-2.7%/yr); 214 active listings in the ZIP; 29 comparable units currently listed for rent nearby; rentals at typical pace (median 19d 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.
• By year 2, paydown + projected appreciation supports a ~$99k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.7% vs local median 2.3% in Dallas — 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.
• This rent per unit runs 39% of the median local income ($47k/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 128 days. Have you received any prior offers? Is the seller open to a 19% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1921 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Some wear is visible, but the cabinets are still functional.
• Minor: Bathroom fixtures — The fixtures may need updating for a more modern look.
• Minor: Exterior paint — Some discoloration is visible, indicating the need for touch-ups.
• Moderate: Flooring — The flooring is worn and may need replacement or refinishing.
• Moderate: Interior paint — The walls and ceilings show discoloration, indicating the need for repainting.
• Minor: Landscaping — The landscaping is overgrown and could benefit from trimming and maintenance.