Rowen Plan

Santa Fe, TX 77510

$315,990D

3 bd · 2.0 ba · 1,760 sqft · Built — · SingleFamily · Active · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $29,452/mo
• Mortgage (P&I): −$1,805
• Tax + insurance: −$574
• HOA: −$0
• Vac / Maint / Mgmt: −$6,185
• Net cashflow: $20,889/mo
• Annual: $250,666/yr
• Cap rate: 79.13%
• Cash-on-cash: 260.15%
• DSCR: 12.58
• 1% rule: 8.56%
• Cash to close: $96,355

Investor read

• This is a 3-bed/2.0-bath single-family listed at $316k.
• At list price, monthly cash flow is $21k ($251k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($29k rent vs $316k).
• It's been on market 37 days — a 3% lower offer ($307k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $307k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#550 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Santa Fe ISD (suburban): math 38% / reading 39% proficiency, ranked #385 of 826 in TX (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Dan J Kubacak El (math 44% / reading 38%, grade F, #1,462 of 4,322 statewide, top 34%, 687 students, 56% FRL); Santa Fe J H (math 34% / reading 37%, grade F, #827 of 1,662 statewide, top 51%, 1,009 students, 52% FRL); Santa Fe H S (math 19% / reading 34%, grade F, #1,228 of 1,632 statewide, top 76%, 1,369 students, 47% FRL) — zoned schools average 52% FRL vs 35% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 236 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; 3,258 units permitted in Galveston County in 2024 (0 in 5+ unit buildings).
• Galveston County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $96k cash investment doubles in ~1 year — after that, you're playing with house money.
• Cap rate 79.1% vs local median 4.5% in Santa Fe — 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

• It's been on market 37 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.