Sapphire Plan

Celina, TX 75009

$380,990F

3 bd · 2.5 ba · 2,163 sqft · Built — · SingleFamily · Active · 443 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,018/mo
• Mortgage (P&I): −$2,245
• Tax + insurance: −$713
• HOA: −$0
• Vac / Maint / Mgmt: −$634
• Net cashflow: $-573/mo
• Annual: $-6,882/yr
• Cap rate: 4.69%
• Cash-on-cash: -5.74%
• DSCR: 0.74
• 1% rule: 0.71%
• Cash to close: $119,842

Investor read

• This is a 3-bed/2.5-bath single-family listed at $381k. Condition is rated excellent.
• At list price, monthly cash flow is $-573 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $345k (9.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $302k (20.8% below list).
• It's been on market 443 days — a 12% lower offer ($335k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $302k (20.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#450 in TX) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, schools A; Watch: cost of living C-, amenities F, commute F.
• Celina ISD (rural): math 50% / reading 61% proficiency, ranked #71 of 826 in TX (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents falling (-4.6%/yr); 2895 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 57% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 19,194 units permitted in Collin County in 2024 (3,988 in 5+ unit buildings).
• Collin County population projected at +60% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 4.7% vs local median 2.8% in Celina — 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 443 days. Have you received any prior offers? Is the seller open to a 21% 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 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.
• 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.