Ramsey Plan

Huntsville, TX 77320

$224,990F

4 bd · 2.0 ba · 1,676 sqft · Built — · SingleFamily · Active · 185 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,764/mo
• Mortgage (P&I): −$1,241
• Tax + insurance: −$394
• HOA: −$0
• Vac / Maint / Mgmt: −$370
• Net cashflow: $-241/mo
• Annual: $-2,896/yr
• Cap rate: 5.07%
• Cash-on-cash: -4.37%
• DSCR: 0.81
• 1% rule: 0.75%
• Cash to close: $66,244

Investor read

• This is a 4-bed/2.0-bath single-family listed at $225k. Condition is rated excellent.
• At list price, monthly cash flow is $-241 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $202k (10.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $176k (21.6% below list).
• It's been on market 185 days — a 12% lower offer ($198k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $176k (21.6% 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 63/100 on livability (#825 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+; Watch: amenities C-, crime D-, commute F.
• Huntsville ISD (town): math 25% / reading 37% proficiency, ranked #621 of 826 in TX (top 75%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Texas Online Preparatory El (math 25% / reading 41%, grade F, #2,208 of 4,322 statewide, top 52%, 1,334 students, 63% FRL); Texas Online Preparatory Middle (math 31% / reading 58%, grade D, #491 of 1,662 statewide, top 31%, 1,941 students, 58% FRL); Texas Online Preparatory H S (math 23% / reading 75%, grade D, #553 of 1,632 statewide, top 34%, 2,100 students, 46% FRL).
• Market conditions: Rents rising (+2.9%/yr); 793 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals leasing fast (median 11d on market — plan ~1-2 weeks tenant-placement turnaround); 527 units permitted in Walker County in 2024 (0 in 5+ unit buildings).
• Walker County population projected at +29% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 5.1% vs local median 3.0% in Huntsville — 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.
• This rent runs 38% of the median local income ($56k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 185 days. Have you received any prior offers? Is the seller open to a 22% 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 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.