Capri II Plan

Conroe, TX 77318

$367,990F

4 bd · 2.5 ba · 2,540 sqft · Built — · SingleFamily · Active · 344 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,587/mo
• Mortgage (P&I): −$2,832
• Tax + insurance: −$900
• HOA: −$0
• Vac / Maint / Mgmt: −$543
• Net cashflow: $-1,688/mo
• Annual: $-20,260/yr
• Cap rate: 2.54%
• Cash-on-cash: -13.40%
• DSCR: 0.40
• 1% rule: 0.48%
• Cash to close: $151,208

Investor read

• This is a 4-bed/2.5-bath single-family listed at $368k. Condition is rated good.
• At list price, monthly cash flow is $-2k ($-20k/yr) — negative.
• To cash-flow at today's rent, offer at most $296k (19.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $259k (29.7% below list).
• It's been on market 344 days — a 12% lower offer ($324k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $259k (29.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#169 in TX, #4,447 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, amenities B; Watch: commute F, health & safety F.
• Willis ISD (rural): math 33% / reading 40% proficiency, ranked #458 of 826 in TX (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: W Lloyd Meador El (math 45% / reading 44%, grade F, #1,155 of 4,322 statewide, top 29%, 617 students, 43% FRL); Robert P Brabham Middle (math 33% / reading 41%, grade F, #756 of 1,662 statewide, top 47%, 1,117 students, 52% FRL); Willis H S (math 19% / reading 46%, grade F, #1,029 of 1,632 statewide, top 64%, 2,521 students, 57% FRL).
• Market conditions: Rents soft (-2.1%/yr); 1569 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals lingering (median 43d 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; 13,259 units permitted in Montgomery County in 2024 (1,402 in 5+ unit buildings).
• Montgomery County population projected at +65% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 2.5% vs local median 3.5% in Conroe — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 34% of the median local income ($92k/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 344 days. Have you received any prior offers? Is the seller open to a 30% concession, seller financing, or rate buy-down credit?
• 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?
• 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.