1200 Woodland Dr

Pharr, TX 78577

$505,000D

None bd · None ba · 3,692 sqft · Built 2026 · MultiFamily · Active · 186 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,493/mo
• Mortgage (P&I): −$2,648
• Tax + insurance: −$842
• HOA: −$63
• Vac / Maint / Mgmt: −$944
• Net cashflow: $-3/mo
• Annual: $-42/yr
• Cap rate: 6.28%
• Cash-on-cash: -0.03%
• DSCR: 1.00
• 1% rule: 0.89%
• Cash to close: $141,400

Investor read

• This is a 4 × 2-bed/2-bath units multifamily listed at $505k. Condition is rated good.
• At list price, monthly cash flow is $-3 ($-42/yr) — negative. Per door: $-1/mo.
• To cash-flow at today's rent, offer at most $504k (0.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $449k (11.0% below list).
• It's been on market 186 days — a 12% lower offer ($444k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $444k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#245 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Pharr-San Juan-Alamo ISD (suburban): math 18% / reading 30% proficiency, ranked #740 of 826 in TX (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 72% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Allen & William Arnold El (math 8% / reading 22%, grade F, #4,021 of 4,322 statewide, top 94%, 586 students, 83% FRL); Lyndon B Johnson Middle (math 15% / reading 19%, grade F, #1,520 of 1,662 statewide, top 92%, 1,003 students, 90% FRL); Psja North Early College H S (math 32% / reading 46%, grade F, #859 of 1,632 statewide, top 53%, 2,176 students, 88% FRL) — zoned schools average 87% FRL vs 72% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents soft (-0.2%/yr); 657 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 110d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 80% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• Climate carrying-cost: moderate flood risk; severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.3% vs local median 4.0% in Pharr — 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 186 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 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?