Properties Evaluated
| Rank |
Property |
Area |
Reputation |
List Price |
DSCR |
Condition |
| #1 |
1313 Peden St: Website | MLS |
Stratford / Montrose |
HIGH |
$995,000 |
1.15 |
Light Rehab |
| #2 |
1539 Westheimer Corner: Website | MLS |
Montrose / Hyde Park |
HIGH |
$850,000 |
1.19 |
Heavy Rehab |
| #3 |
5763 Easthampton Dr A-D: Website | Zillow |
Pine Village North |
LOW |
$849,900 |
1.09 |
Turnkey |
| #4 |
324 W Alabama St: Website | MLS |
Westmoreland |
MED |
$875,000 |
1.08 |
Moderate Rehab |
| #5 |
1409 Wentworth St: Website | MLS |
Macgregor / Med Center |
MED |
$895,000 |
1.03 |
Turnkey |
| #6 |
3106 Lee St: Website | MLS |
Third Ward |
LOW |
$880,000 |
1.03 |
Moderate Rehab |
| #7 |
1920 Binz St #6: Website | MLS |
Museum District / Rice |
HIGH |
$950,000 |
1.02 |
Moderate Rehab |
Website = ThePropertyJoesGroup.com IDX • MLS = source listing on HAR.com/Zillow
Investor Search Process — How These Properties Were Found
The Buybox
This search was built around an investor buyer profile requiring properties that make sense from a DSCR (Debt Service Coverage Ratio) perspective — not just cash-on-cash return or cap rate in isolation. The core thesis: if the property cannot service its own debt, the numbers do not work regardless of how attractive other metrics look.
- Property Type: Multi-family, 4 units (four-plex)
- Market: Greater Houston area
- Construction: Preference for newer construction
- Target Rent: $2,000+ per unit per month minimum for DSCR viability
- Down Payment: 20% conventional / 25% DSCR loan
HAR.com Search Criteria
Active listings on HAR.com (Houston Association of Realtors MLS / CoreLogic) were filtered:
- Property Type: Multi-Family
- Status: Active
- Total Units: 4
- Area: Houston (Greater Houston metro)
- Price range filtered to align with rent-to-price ratios that can pass DSCR
v3 Enhancement: Property Condition Research
Each of the 7 positive-cash-flow properties was researched for year built, current condition, and estimated rehab costs. This is critical because a property with great DSCR but $200K in rehab needs has a very different actual return than one that is turnkey. v3 recalculates all returns with rehab costs and lost rent during renovation factored in.
DSCR — The Key Metric
DSCR = Net Operating Income / Total Annual Debt Service
DSCR tells you whether the property's income covers its mortgage payments. Unlike cash-on-cash return, DSCR is what lenders use to approve DSCR loans (no income documentation required for the borrower — the property must qualify on its own).
DSCR > 1.25
STRONG — Lender-approved, good investment. Property income comfortably covers debt.
DSCR 1.0 – 1.25
MARGINAL — Tight. May not qualify for DSCR loan. Little room for vacancies.
DSCR < 1.0
NEGATIVE — Property income does not cover debt. Avoid unless rents can be raised.
Condition Impact Summary — How Rehab Changes the Rankings
v2 ranked purely by DSCR. v3 factors in rehab costs + lost rent during renovation, which dramatically shifts which properties are actually the best investments. The "Adjusted CoC" column shows what the cash-on-cash return looks like when you include ALL capital required — not just down payment and closing.
| Rank |
Property |
Condition |
Rehab Cost |
Adj. CoC |
v2 Rank |
| 1 |
1313 Peden St |
■ Light |
$30K |
3.76% |
#2 |
| 2 |
1539 Westheimer |
■ Heavy |
$170K |
2.51% |
#1 ↓ |
| 3 |
5763 Easthampton |
■ Turnkey |
$6K |
2.39% |
#3 |
| 4 |
324 W Alabama |
■ Moderate |
$80K |
1.50% |
#4 |
| 5 |
1409 Wentworth |
■ Light |
$20K |
0.83% |
#5 |
| 6 |
3106 Lee St |
■ Moderate |
$80K |
0.47% |
#6 |
| 7 |
1920 Binz St |
■ Moderate |
$80K |
0.35% |
#7 |
Key takeaway: Peden rises to #1 — occupied, earning income, light rehab only. Westheimer drops from #1 to #2 despite best DSCR because $170K rehab + 6 months zero income is a massive drag. Easthampton (2017 build, turnkey) is the lowest-risk option on the list.
Executive Summary — v3 (DSCR + Condition Analysis)
Analyzed 15 four-plex listings from the Houston MLS against the Resasco investor buybox. Each property is evaluated under two financing scenarios: Conventional (20% down, 7.25%) and DSCR Loan (25% down, 8.0%). New in v3: All 7 positive-cash-flow properties have been researched for year built, condition, rehab costs, and stabilization timeline. Returns are recalculated with total capital invested (including rehab + lost rent during renovation).
Top 5 by Adjusted CoC (Conventional scenario, factoring rehab):
- #1 — 1313 Peden St (Stratford/Montrose) — Adj. CoC 3.76%, DSCR 1.15. Fully occupied, 378 DOM = negotiation leverage. Light rehab ($30K) between tenant turns. Best risk-adjusted return on the list.
- #2 — 1539 Westheimer Corner (Montrose) — Adj. CoC 2.51%, DSCR 1.19. Best raw DSCR, BUT year built 1924, listed as-is, needs $170K heavy rehab + 6 months with no income.
- #3 — 5763 Easthampton Dr (Pine Village) — Adj. CoC 2.39%, DSCR 1.09. Built 2017, turnkey, $6K cosmetic only. Lowest risk option — best if buyer values certainty.
- #4 — 324 W Alabama St (Westmoreland) — Adj. CoC 1.50%, DSCR 1.08. Year built 1900 (oldest on list), partially updated. Moderate rehab $80K.
- #5 — 1409 Wentworth St (Med Center) — Adj. CoC 0.83%, DSCR 1.03. Turnkey condition (new roofs, all leased), but tight cash flow.
v3 insight: Property condition is as important as DSCR. Westheimer had the best DSCR (1.19) in v2 but drops to #2 when you factor in $170K rehab + $55K lost rent. Peden, with tenants in place generating income from day one, is the clear winner on a risk-adjusted basis.
Analysis Assumptions — Two Financing Scenarios
Scenario A: Conventional (20% Down)
- Down Payment: 20% of purchase price
- Closing Costs: ~3% of purchase price
- Rate: 7.25% fixed, 30-year amortization
- P&I Factor: $6.8218 per $1,000 loan
- Standard 4-unit investment conventional
Scenario B: DSCR Loan (25% Down)
- Down Payment: 25% of purchase price
- Closing Costs: ~3% of purchase price
- Rate: 8.0% fixed, 30-year amortization
- P&I Factor: $7.3376 per $1,000 loan
- No income docs required; property must qualify
- Many lenders require minimum DSCR 1.20-1.25
- Operating Expenses: 40% of gross rent (property tax, insurance, maintenance, 5% vacancy, 8% property management)
- DSCR = Annual NOI / Annual Debt Service (P&I only)
- Rent Estimates: Based on Houston market comps by neighborhood, unit size, and condition
- v3 Addition — Adjusted CoC = Annual Cash Flow / (Down Payment + Closing + Rehab Cost + Lost Rent During Rehab)
Top Picks — v3 Adjusted Rankings (DSCR + Condition)
Top Pick #1 — Best Risk-Adjusted Return (Occupied, Light Rehab)
Property Condition & Rehab Assessment
All 4 units fully leased with active tenants. Well-maintained per listing. Rehab = cosmetic updates between tenant turns ($5–$10K/unit). No vacancy loss during acquisition — income from day 1.
Scenario A: Conventional (20% Down)
Down Payment$199,000
Closing Costs$29,850
Original Cash In$228,850
Loan Amount$796,000
Monthly P&I$5,430
Monthly Cash Flow+$810
Annual Cash Flow+$9,719
Original CoC4.25%
DSCR: 1.15
Scenario B: DSCR Loan (25% Down)
Down Payment$248,750
Total Cash In$278,600
Loan Amount$746,250
Monthly P&I$5,475
Monthly Cash Flow+$765
Annual Cash Flow+$9,182
Original CoC3.30%
DSCR: 1.14
v3 Adjusted Returns (Conventional — Including Rehab)
Rehab Cost (Mid Est.)$30,000
Lost Rent During Rehab$0 (occupied)
Total Cash Invested$258,850
Adjusted Cash-on-Cash3.76%
DSCR (unchanged)1.15
Why #1: 378 days on market — over a year. This is the biggest negotiation opportunity on the list. All 4 units currently leased = income from closing day. Rehab is cosmetic only, done between tenant turns, not a full renovation. Peden/Stratford is prime Montrose with the highest rent ceiling. The real play: offer $875K-$900K. At $900K negotiated price, conventional DSCR jumps to ~1.28 (green zone), Adjusted CoC rises to ~5.5%, cash flow hits +$1,090/mo. The combination of occupied units + negotiation leverage + light rehab makes this the clear #1 on a risk-adjusted basis.
Top Pick #2 — Best Raw DSCR, BUT Heavy Rehab Needed
Property Condition & Rehab Assessment
Condition
AS-IS, No Repairs
Rehab Estimate
$140K–$200K
102-year-old building, listed as-is with no seller repairs. Needs full interior gut: plumbing/electrical updates, HVAC, kitchens, bathrooms, flooring, possibly structural work. Could be used as commercial. Buyer noted it "looks like it needs quite a bit of remodeling." No income during 4–8 month renovation period.
Scenario A: Conventional (20% Down)
Down Payment$170,000
Closing Costs$25,500
Original Cash In$195,500
Loan Amount$680,000
Monthly P&I$4,639
Monthly Cash Flow+$881
Annual Cash Flow+$10,574
Original CoC5.41%
DSCR: 1.19
Scenario B: DSCR Loan (25% Down)
Down Payment$212,500
Total Cash In$238,000
Loan Amount$637,500
Monthly P&I$4,678
Monthly Cash Flow+$842
Annual Cash Flow+$10,105
Original CoC4.25%
DSCR: 1.18
v3 Adjusted Returns (Conventional — Including Rehab)
Rehab Cost (Mid Est.)$170,000
Lost Rent (6 mo × $9,200)$55,200
Total Cash Invested$420,700
Adjusted Cash-on-Cash2.51%
DSCR (unchanged)1.19
Why #2 (dropped from #1): Still has the best raw DSCR on the list at 1.19. Montrose location is premium for rents and appreciation. BUT the 1924 build + as-is condition means $170K in rehab + 6 months with zero income while paying $4,639/mo mortgage = $27,834 in carrying costs during renovation ON TOP of the $170K. Total additional capital beyond acquisition: ~$225K. That turns a 5.41% CoC into 2.51% adjusted. Still profitable, but requires an investor comfortable deploying ~$420K total and managing a major renovation. Offer $775K-$800K if pursuing — the as-is condition supports aggressive pricing.
Top Pick #3 — Lowest Risk (2017 Build, Turnkey, Zero Rehab)
Property Condition & Rehab Assessment
Newest property on the entire list at just 9 years old. Modern construction, townhome style. All systems (HVAC, plumbing, electrical, roof) are within useful life. Previously sold Aug 2024 for $935K — now listed at $849.9K (price reduction = motivated). At most, paint touch-up and minor cosmetic. Ready to rent immediately.
Scenario A: Conventional (20% Down)
Down Payment$169,980
Closing Costs$25,497
Original Cash In$195,477
Loan Amount$679,920
Monthly P&I$4,638
Monthly Cash Flow+$402
Annual Cash Flow+$4,821
Original CoC2.47%
DSCR: 1.09
Scenario B: DSCR Loan (25% Down)
Down Payment$212,475
Total Cash In$237,972
Loan Amount$637,425
Monthly P&I$4,677
Monthly Cash Flow+$363
Annual Cash Flow+$4,356
Original CoC1.83%
DSCR: 1.08
v3 Adjusted Returns (Conventional — Including Rehab)
Rehab Cost (Mid Est.)$6,000
Lost Rent During Rehab$0 (ready to rent)
Total Cash Invested$201,477
Adjusted Cash-on-Cash2.39%
DSCR (unchanged)1.09
Why #3 (and why it might be #1 for risk-averse buyers): This is the safest property on the entire list. Built 2017 = no surprises on plumbing, electrical, HVAC, or roof for years. Largest units (2,018 SF each — essentially small houses). Lowest $/SF ($105) by a wide margin. Townhome-style = better tenant retention, lower turnover. Previously sold for $935K just 18 months ago, now at $849.9K — negotiate further to $800K-$825K and the adjusted CoC improves significantly. If the buyer values zero rehab risk + lowest total cash needed ($201K) + modern systems, this is the pick.
Top Pick #4 — Partially Updated, Near Montrose
Property Condition & Rehab Assessment
Condition
Partially Updated
Oldest building on the list at 126 years. Recent electrical updates, new exterior stairs, new AC — the expensive systems are partially done. 2-story, fully gated, secured access, designated parking. Bright units with natural light. Remaining needs: likely plumbing updates, kitchens, bathrooms, possible foundation work. Seller may contribute to buyer expenses.
Scenario A: Conventional (20% Down)
Down Payment$175,000
Closing Costs$26,250
Original Cash In$201,250
Loan Amount$700,000
Monthly P&I$4,775
Monthly Cash Flow+$385
Annual Cash Flow+$4,617
Original CoC2.29%
DSCR: 1.08
Scenario B: DSCR Loan (25% Down)
Down Payment$218,750
Total Cash In$245,000
Loan Amount$656,250
Monthly P&I$4,815
Monthly Cash Flow+$345
Annual Cash Flow+$4,138
Original CoC1.69%
DSCR: 1.07
v3 Adjusted Returns (Conventional — Including Rehab)
Rehab Cost (Mid Est.)$80,000
Lost Rent (3 mo × $8,600)$25,800
Total Cash Invested$307,050
Adjusted Cash-on-Cash1.50%
DSCR (unchanged)1.08
Why #4: Westmoreland is adjacent to Montrose proper — same tenant pool, slightly lower acquisition cost. 174 DOM = motivated seller. The partial updates (electrical + AC) reduce scope of remaining rehab. But at 126 years old, foundation risk is real and should be inspected carefully. Seller offering buyer expense contribution. Offer $800K-$825K for DSCR improvement + ask for seller credit toward remaining rehab. At $825K with a $15K seller credit: total capital drops and adjusted CoC improves toward 2%.
Top Pick #5 — Turnkey Operations, Tight Cash Flow
Property Condition & Rehab Assessment
Condition
Turnkey / All Leased
Two buildings: main house (3/2 down, 2/1 up) + rear building (two 1/1 units). New roofs on BOTH buildings. Appliances included (refrigerators, microwaves, washer/dryers). All units leased. Shared patio, green space, covered parking. Seller may contribute up to $25K. Rehab = minor cosmetic between tenant turns.
Scenario A: Conventional (20% Down)
Down Payment$179,000
Closing Costs$26,850
Original Cash In$205,850
Loan Amount$716,000
Monthly P&I$4,884
Monthly Cash Flow+$156
Annual Cash Flow+$1,867
Original CoC0.91%
DSCR: 1.03
Scenario B: DSCR Loan (25% Down)
Down Payment$223,750
Total Cash In$250,600
Loan Amount$671,250
Monthly P&I$4,925
Monthly Cash Flow+$115
Annual Cash Flow+$1,385
Original CoC0.55%
DSCR: 1.02
v3 Adjusted Returns (Conventional — Including Rehab)
Rehab Cost (Mid Est.)$20,000
Lost Rent During Rehab$0 (all leased)
Total Cash Invested$225,850
Adjusted Cash-on-Cash0.83%
DSCR (unchanged)1.03
Why #5: Proximity to Texas Medical Center = reliable tenant demand. New roofs on both buildings + all appliances + all leased = truly turnkey operations. Seller offering up to $25K credit. DSCR at 1.03 is marginal — would not qualify for DSCR lending without price reduction. Cash flow is thin at +$156/mo but the location story for long-term appreciation near TMC is compelling. Best as a conventional-financing long-term hold.
Also Positive Cash Flow — Lower Adjusted Returns
#6 — Third Ward Gentrification Play
Total Cash Invested
$307,000
Limited condition data. Conservative moderate rehab estimate based on area and likely age. Third Ward gentrification provides long-term appreciation upside but current numbers are very thin. $80K rehab + $24.6K lost rent drives total cash to $307K for just $1,440/yr return.
#7 — Museum District Premium Location
Total Cash Invested
$324,900
Museum District = premium location and higher tenant expectations. Multiple detached dwelling configuration. Conservative rehab estimate given limited data. $80K rehab + $26.4K lost rent for $1,140/yr return is essentially break-even. Only worth pursuing as an appreciation play, not cash flow.
Complete Analysis — Conventional (20% Down, 7.25%) with Adjusted Returns
v3 ranking by Adjusted CoC (factors in rehab cost + lost rent). Top 7 shown with condition data; remaining 8 unchanged from v2.
| # |
Address |
Price |
Year |
Cond. |
Rent/U |
CF/Mo |
DSCR |
Orig CoC |
Rehab$ |
Lost Rent |
Total $In |
Adj CoC |
| 1 |
1313 Peden |
$995K |
1930 |
■ |
$2,600 |
+$810 |
1.15 |
4.25% |
$30K |
$0 |
$259K |
3.76% |
| 2 |
1539 Westheimer |
$850K |
1924 |
■ |
$2,300 |
+$881 |
1.19 |
5.41% |
$170K |
$55K |
$421K |
2.51% |
| 3 |
5763 Easthampton |
$850K |
2017 |
■ |
$2,100 |
+$402 |
1.09 |
2.47% |
$6K |
$0 |
$201K |
2.39% |
| 4 |
324 W Alabama |
$875K |
1900 |
■ |
$2,150 |
+$385 |
1.08 |
2.29% |
$80K |
$26K |
$307K |
1.50% |
| 5 |
1409 Wentworth |
$895K |
1938 |
■ |
$2,100 |
+$156 |
1.03 |
0.91% |
$20K |
$0 |
$226K |
0.83% |
| 6 |
3106 Lee St |
$880K |
~1960 |
■ |
$2,050 |
+$120 |
1.03 |
0.71% |
$80K |
$25K |
$307K |
0.47% |
| 7 |
1920 Binz St |
$950K |
~1954 |
■ |
$2,200 |
+$95 |
1.02 |
0.52% |
$80K |
$26K |
$325K |
0.35% |
| 8 |
6930 Paris St |
$800K |
— |
— |
$1,800 |
-$46 |
0.99 |
-0.30% |
— |
— |
$184K |
— |
| 9 |
3813 Jeanetta |
$950K |
— |
— |
$2,100 |
-$145 |
0.97 |
-0.79% |
— |
— |
$219K |
— |
| 10 |
1206 Schweikhardt |
$950K |
— |
— |
$1,900 |
-$624 |
0.88 |
-3.43% |
— |
— |
$218K |
— |
| 11 |
4445 Rusk St |
$975K |
— |
— |
$1,950 |
-$641 |
0.88 |
-3.43% |
— |
— |
$224K |
— |
| 12 |
6101 Shotwell |
$845K |
— |
— |
$1,650 |
-$652 |
0.86 |
-4.02% |
— |
— |
$194K |
— |
| 13 |
4002 Bennington |
$1,200K |
— |
— |
$2,400 |
-$789 |
0.88 |
-3.43% |
— |
— |
$276K |
— |
| 14 |
12033 Ticonderoga
FLAG: 240 SF/unit? |
$899K |
— |
— |
$1,200 |
-$2,026 |
0.59 |
-11.76% |
— |
— |
$207K |
— |
| 15 |
305 N Live Oak |
$1,200K |
— |
— |
$1,700 |
-$2,469 |
0.62 |
-10.73% |
— |
— |
$276K |
— |
Complete Analysis — Scenario B: DSCR Loan (25% Down, 8.0%)
Ranked by DSCR. No income docs required — property must cash flow. Most lenders require DSCR ≥ 1.20–1.25.
| # |
Address |
Price |
Year |
Cond. |
Rent/U |
CF/Mo |
DSCR |
CoC% |
Cash In |
Qualifies? |
| 1 |
1539 Westheimer |
$850K |
1924 |
■ |
$2,300 |
+$842 |
1.18 |
4.25% |
$238K |
Marginal |
| 2 |
1313 Peden St |
$995K |
1930 |
■ |
$2,600 |
+$765 |
1.14 |
3.30% |
$279K |
Marginal |
| 3 |
5763 Easthampton |
$850K |
2017 |
■ |
$2,100 |
+$363 |
1.08 |
1.83% |
$238K |
No |
| 4 |
324 W Alabama |
$875K |
1900 |
■ |
$2,150 |
+$345 |
1.07 |
1.69% |
$245K |
No |
| 5 |
1409 Wentworth |
$895K |
1938 |
■ |
$2,100 |
+$115 |
1.02 |
0.55% |
$251K |
No |
| 6 |
3106 Lee St |
$880K |
~1960 |
■ |
$2,050 |
+$80 |
1.02 |
0.42% |
$229K |
No |
| 7 |
1920 Binz St |
$950K |
~1954 |
■ |
$2,200 |
+$52 |
1.01 |
0.23% |
$266K |
No |
| 8 | 6930 Paris St | $800K | — | — | $1,800 | -$83 | 0.98 | -0.44% | $224K | No |
| 9 | 3813 Jeanetta | $950K | — | — | $2,100 | -$188 | 0.96 | -0.85% | $266K | No |
| 10 | 1206 Schweikhardt | $950K | — | — | $1,900 | -$667 | 0.87 | -3.00% | $266K | No |
| 11 | 4445 Rusk St | $975K | — | — | $1,950 | -$685 | 0.87 | -3.00% | $274K | No |
| 12 | 6101 Shotwell | $845K | — | — | $1,650 | -$690 | 0.85 | -3.48% | $237K | No |
| 13 | 4002 Bennington | $1,200K | — | — | $2,400 | -$844 | 0.87 | -3.01% | $336K | No |
| 14 | 12033 Ticonderoga | $899K | — | — | $1,200 | -$2,068 | 0.58 | -9.82% | $253K | No |
| 15 | 305 N Live Oak | $1,200K | — | — | $1,700 | -$2,524 | 0.62 | -9.01% | $336K | No |
"Qualifies?" = Would this DSCR likely pass lender minimums (1.20–1.25)? Marginal = within negotiation range of qualifying.
Buyer Financing Strategy — Impact on Property Selection
Dr. Resasco's acquisition strategy uses 104% financing (zero capital down) with a 4-phase loan sequence: 104% LTV → Conventional → DSCR continually → FHA recycling every 6 months. This fundamentally changes which properties are viable.
At 104% LTV, properties MUST have tenants producing income from Day 1. Any vacancy period or rehab timeline is amplified because the debt service is higher than a conventional loan and there is zero equity cushion.
View Full Investor Strategy Analysis →
DSCR Insights — What This Means for Resasco
- No property on this list achieves DSCR ≥ 1.25 at list price under either financing scenario. This means negotiation is essential to make DSCR lending work.
- Two properties can reach 1.25 DSCR with negotiation:
- 1539 Westheimer at ~$800K (down from $850K, 107 DOM supports the ask)
- 1313 Peden at ~$890K (down from $995K, 378 DOM strongly supports the ask)
- If using conventional financing (20% down, 7.25%), 7 of 15 properties produce positive cash flow. However, only 3 maintain >2% Adjusted CoC when rehab costs are included (Peden, Westheimer, Easthampton).
- v3 finding: Condition matters as much as DSCR. Westheimer has the best DSCR (1.19) but the worst condition (1924, as-is). Peden has the second-best DSCR (1.15) with the best condition (fully occupied). The 2.90% difference in CoC (5.41% original vs 2.51% adjusted for Westheimer) shows why condition analysis is essential.
- $2,000+/unit/month is the threshold. Properties below this rent level cannot support the debt at current prices regardless of financing structure.
- Rate sensitivity: If rates drop to 6.5% in 12-18 months, the top 4 properties all achieve DSCR ≥ 1.20 at list price.
Negotiation Opportunities (High DOM = Motivated Sellers)
- 1313 Peden (378 DOM) — Listed over a year. Offer $875K-$900K. At $900K: conventional DSCR reaches ~1.28 (DSCR loan qualifies), Adjusted CoC rises to ~5.5%, CF +$1,090/mo. Strongest negotiation play AND best condition on the list.
- 1539 Westheimer (107 DOM) — As-is listing supports aggressive pricing. Offer $775K-$800K. At $800K: DSCR reaches ~1.27. But factor in $170K+ rehab budget when calculating total investment.
- 324 W Alabama (174 DOM) — Near Montrose. Offer $800K-$825K. Seller offering buyer expense contributions. Ask for $15K+ credit toward remaining rehab.
- 5763 Easthampton (54 DOM) — Previously sold at $935K (Aug 2024), now $849.9K. Offer $800K-$825K. Turnkey = no rehab risk = cleaner deal.
- 1409 Wentworth (24 DOM) — Seller offering up to $25K credit. Short DOM means less leverage, but the credit offer is significant.
Recommended Strategy for Resasco — v3 Updated
- Tier 1 — Schedule showings immediately:
- 1313 Peden — Best risk-adjusted return. Occupied, earning income, light rehab. 378 DOM = massive negotiation leverage.
- 5763 Easthampton — Lowest risk. 2017 build, turnkey, $201K total cash. If buyer values certainty over max return.
- Tier 2 — Show if buyer has renovation appetite:
- 1539 Westheimer — Best DSCR but needs $170K+ rehab. Only for buyers comfortable managing a major renovation.
- 324 W Alabama — Partially done, moderate remaining work, seller credits available.
- If using DSCR loan: Focus exclusively on Peden and Westheimer — the only two that can reach 1.25 DSCR with realistic negotiation.
- If budget is under $210K total cash: Easthampton ($201K all-in) is the only option that keeps total investment below $210K.
- Key v3 insight for Resasco: Ask the buyer: "Are you a renovator or an operator?" If operator → Peden or Easthampton. If renovator → Westheimer could be the highest-upside play (post-rehab value likely exceeds $850K + $170K investment in Montrose).
Stabilization Timeline — When Does Income Start?
Critical for investor cash planning. Properties with tenants generate income from day 1. Properties needing rehab have a "dead zone" where mortgage payments are due but no rent is coming in.
| Property |
Timeline |
Income Starts |
Carrying Cost During Rehab |
| 1313 Peden | 0 months | Day 1 (occupied) | $0 |
| 5763 Easthampton | 0 months | Day 1 (turnkey) | $0 |
| 1409 Wentworth | 0 months | Day 1 (all leased) | $0 |
| 324 W Alabama | 2–4 months | Month 3–5 | $14K–$19K |
| 3106 Lee St | 2–4 months | Month 3–5 | $14K–$19K |
| 1920 Binz St | 2–4 months | Month 3–5 | $16K–$21K |
| 1539 Westheimer | 4–8 months | Month 5–9 | $19K–$37K |
Disclaimer
This analysis is for informational purposes only and does not constitute financial or investment advice. Rent estimates are based on neighborhood market research and comparable properties but are not guaranteed. Actual operating expenses, vacancy rates, maintenance costs, insurance premiums, and property taxes will vary by property. Property condition assessments and rehab cost estimates in this v3 report are based on publicly available listing data, year built, and general market knowledge — they are NOT based on physical inspections. Actual renovation costs can vary significantly from estimates. DSCR loan terms, requirements, and availability vary by lender and are subject to change. Buyer should verify all information independently, conduct property inspections, review actual rent rolls (if existing tenants), obtain actual insurance and tax quotes, get contractor bids for any renovation work, and consult with a financial advisor and/or CPA before making investment decisions.
Prepared by: The Property Joes Group | Keller Williams Memorial | Joseph@ThePropertyJoesGroup.com
Analysis v3.5 — DSCR + Condition + Buyer Strategy — March 10, 2026