7043 Madison Trl

Houston, TX 77084

$259,950D

4 bd · 2.5 ba · 2,410 sqft · Built 1997 · SingleFamily · Pending · 54 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,183/mo
• Mortgage (P&I): −$1,363
• Tax + insurance: −$769
• HOA: −$35
• Vac / Maint / Mgmt: −$458
• Net cashflow: $-443/mo
• Annual: $-5,313/yr
• Cap rate: 4.25%
• Cash-on-cash: -7.30%
• DSCR: 0.68
• 1% rule: 0.84%
• Cash to close: $72,786

Investor read

• This is a 4-bed/2.5-bath single-family listed at $260k.
• At list price, monthly cash flow is $-443 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $182k (30.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $218k (16.0% below list).
• It's been on market 54 days — a 3% lower offer ($252k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $182k (30.1% below list) — sets the bar for cash-flow.
• Local home prices are declining (-1.4%/yr); year-one equity from $2k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#184 in TX, #4,771 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, cost of living A+, housing A+; Watch: crime F.
• Cypress-Fairbanks ISD (suburban): math 45% / reading 52% proficiency, ranked #161 of 826 in TX (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Horne El (math 24% / reading 36%, grade F, #2,500 of 4,322 statewide, top 58%, 891 students, 78% FRL); Truitt Middle (math 34% / reading 41%, grade F, #736 of 1,662 statewide, top 45%, 1,419 students, 76% FRL); Cypress-Fairbanks J J A E P (12 students, 0% FRL).
• Zoned-school proficiency averages 34% at this address vs 48% district-wide (-15 pts) — the specific schools serving this property underperform the Cypress-Fairbanks ISD average; the district grade overstates school quality for this exact location.
• Watch-outs: property tax is 3.1% of price.
• Market conditions: Rents soft (-2.9%/yr); 505 active listings in the ZIP; 20 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 55% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 29,883 units permitted in Harris County in 2024 (8,621 in 5+ unit buildings).
• Harris County population projected at +47% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: severe wind risk, 99% 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 4.2% vs local median 3.1% in Houston — 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 runs 33% of the median local income ($81k/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 54 days. Have you received any prior offers? Is the seller open to a 30% concession, seller financing, or rate buy-down credit?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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?