15905 Washington Palm Dr

Harlingen, TX 75052

$112,000B+

3 bd · 2.0 ba · 1,216 sqft · Built 1996 · SingleFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,613/mo
• Mortgage (P&I): −$587
• Tax + insurance: −$157
• HOA: −$0
• Vac / Maint / Mgmt: −$339
• Net cashflow: $530/mo
• Annual: $6,355/yr
• Cap rate: 11.97%
• Cash-on-cash: 20.26%
• DSCR: 1.90
• 1% rule: 1.44%
• Cash to close: $31,360

Investor read

• This is a 3-bed/2.0-bath single-family listed at $112k.
• At list price, monthly cash flow is $530 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $112k).
• It's been on market 20 days — a 2% lower offer ($110k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $110k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $774 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#217 in TX) — a middle-class / working-renter tenant base. Strengths: amenities A+, cost of living A+, housing A+; Watch: crime C-, commute F, employment F.
• Harlingen CISD (urban): math 25% / reading 35% proficiency, ranked #647 of 826 in TX (top 78%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 74% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Stuart Place El (math 30% / reading 40%, grade F, #1,965 of 4,322 statewide, top 46%, 613 students, 59% FRL); Moises Vela Middle (math 27% / reading 30%, grade F, #1,122 of 1,662 statewide, top 69%, 742 students, 67% FRL); Harlingen H S - South (math 47% / reading 17%, grade F, #1,044 of 1,632 statewide, top 66%, 1,571 students, 75% FRL).
• Market conditions: Rents flat; 289 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 2,326 units permitted in Cameron County in 2024 (503 in 5+ unit buildings).
• Cameron County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $44k; list at $112k implies a 157% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 0.1% rent growth), your $31k cash investment doubles in ~8 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 12.0% vs local median 3.8% in Harlingen — 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

• 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.