1670 Terminal Loop Rd

McQueeney, TX 78123

$345,000D

None bd · None ba · 2,880 sqft · Built 2000 · Townhouse · Active · 489 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,887/mo
• Mortgage (P&I): −$1,809
• Tax + insurance: −$1,023
• HOA: −$0
• Vac / Maint / Mgmt: −$606
• Net cashflow: $-552/mo
• Annual: $-6,619/yr
• Cap rate: 5.86%
• Cash-on-cash: -1.55%
• DSCR: 0.93
• 1% rule: 0.84%
• Cash to close: $96,600

Investor read

• This is a townhouse listed at $345k.
• At list price, monthly cash flow is $-552 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $248k (28.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $289k (16.3% below list).
• It's been on market 489 days — a 12% lower offer ($304k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $248k (28.2% below list) — sets the bar for cash-flow.
• In year one you build about $1k of equity ($2k loan paydown + $-929 appreciation (-0.3% local appreciation)).
• Location reads 67/100 on livability (#559 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, cost of living A+; Watch: schools D, amenities F, commute F.
• Seguin ISD (town): math 26% / reading 30% proficiency, ranked #663 of 826 in TX (top 80%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 32 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 2,064 units permitted in Guadalupe County in 2024 (133 in 5+ unit buildings).
• Guadalupe County population projected at +61% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 5→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.9% vs local median 1.2% in McQueeney — 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 489 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.