3514 Spring Time St

Talty, TX 75126

$227,990D

3 bd · 2.0 ba · 1,156 sqft · Built 2026 · SingleFamily · Active · 34 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,991/mo
• Mortgage (P&I): −$1,196
• Tax + insurance: −$380
• HOA: −$42
• Vac / Maint / Mgmt: −$418
• Net cashflow: $-45/mo
• Annual: $-539/yr
• Cap rate: 6.06%
• Cash-on-cash: -0.84%
• DSCR: 0.96
• 1% rule: 0.87%
• Cash to close: $63,837

Investor read

• This is a 3-bed/2.0-bath single-family listed at $228k. Condition is rated good.
• At list price, monthly cash flow is $-45 ($-539/yr) — negative.
• To cash-flow at today's rent, offer at most $221k (2.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $199k (12.7% below list).
• It's been on market 34 days — a 3% lower offer ($221k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $199k (12.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#1,124 in TX) — a working-class tenant base; expect higher turnover. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Forney ISD (rural): math 41% / reading 44% proficiency, ranked #234 of 826 in TX (top 28%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Willett El (725 students, 32% FRL); Warren Middle (math 43% / reading 50%, grade D+, #443 of 1,662 statewide, top 28%, 903 students, 26% FRL); Forney H S (math 64% / reading 58%, grade C+, #258 of 1,632 statewide, top 16%, 2,272 students, 28% FRL) — zoned schools at 28% FRL track the district average.
• Market conditions: Rents rising (+1.4%/yr); 2204 active listings in the ZIP; solid renter incomes; 1,747 units permitted in Kaufman County in 2024 (180 in 5+ unit buildings).
• Kaufman County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 6.1% vs local median 1.9% in Talty — 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 34 days. Have you received any prior offers? Is the seller open to a 13% 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-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.
• 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.