Jazz Plan

Pearland, TX 77581

$109,900F

3 bd · 2.0 ba · 1,153 sqft · Built — · Manufactured · Active · 559 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,472/mo
• Mortgage (P&I): −$787
• Tax + insurance: −$250
• HOA: −$850
• Vac / Maint / Mgmt: −$309
• Net cashflow: $-723/mo
• Annual: $-8,682/yr
• Cap rate: 0.51%
• Cash-on-cash: -20.67%
• DSCR: 0.08
• 1% rule: 0.98%
• Cash to close: $42,000

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $110k. Condition is rated excellent.
• At list price, monthly cash flow is $-723 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $45k (58.8% below list).
• Meets the 1% rule at list price ($1k rent vs $110k).
• It's been on market 559 days — a 12% lower offer ($97k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $45k (58.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#32 in TX, #1,539 nationally) — a professional / high-income tenant draw. Strengths: employment A+, housing A+, crime A; Watch: amenities D-, commute F.
• Pearland ISD (suburban): math 58% / reading 59% proficiency, ranked #47 of 826 in TX (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Rustic Oak El (math 52% / reading 59%, grade C, #587 of 4,322 statewide, top 14%, 674 students, 31% FRL); Pearland J H East (math 61% / reading 62%, grade B+, #141 of 1,662 statewide, top 9%, 848 students, 34% FRL); Pearland H S (math 58% / reading 64%, grade C+, #258 of 1,632 statewide, top 16%, 3,261 students, 36% FRL).
• Watch-outs: HOA is 58% of rent.
• Market conditions: Rents rising (+2.9%/yr); 568 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals lingering (median 57d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 56% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 3,960 units permitted in Brazoria County in 2024 (593 in 5+ unit buildings).
• Brazoria County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 0.5% vs local median 3.1% in Pearland — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent is only 16% of the median local income ($111k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 559 days. Have you received any prior offers? Is the seller open to a 59% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.