Is 387 Cypress Ln in Sulphur Springs, TX a good investment?

CashFlowRE grades it F with a 3.8% cap rate and $-567/mo modeled cash flow at a $276,871 list price. See the full underwriting and recommended offer on the page.

What is the cap rate for 387 Cypress Ln?

The modeled cap rate is 3.8% — annual NOI divided by price, using CashFlowRE's rent and expense estimates.

What would this property rent for?

Estimated market rent is $1,757/month, from CashFlowRE's rent model.

F Composite 30.84

Why this score? — see what drove the F grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

ARV discount +9.1/15.0
Cash flow +5.7/30.0
Condition / age +5.0/5.0
Schools +3.6/10.0
Livability +3.5/5.0
Rent growth +2.5/5.0
1% rule +1.3/10.0
DSCR +0.1/10.0
Appreciation +0.0/10.0

$276,871

387 Cypress Ln · Sulphur Springs, TX 75482

4 bd · 2.0 ba · 1,473 sqft · SingleFamily · 71 Days on market

Built 2026 Excellent condition 6,011 sqft lot 2-car garage $188/sqft · at area comps Est $287k · at est. $41/mo HOA · 2% of rent

🖨 Deal sheet (PDF) 📄 Offer letter ✓ Due diligence

Listing remarks

MLS# 21285112 - Built by Altura Homes - Sep 2026 completion! ~ The Mansfield Floorplan is a beautifully designed new construction home in Sulphur Springs offering 1,473 square feet of thoughtfully planned living space with 4 bedrooms and 2 bathrooms. Designed for modern comfort and functionality, this home features an open-concept layout that seamlessly connects the spacious living area, dining space, and kitchen, creating the perfect environment for both everyday living and entertaining.

Key facts

6,011 sq ft lot
2 garage spots
Built 2026

Neighborhood map

Property Rental comp Retail Costco Walmart Transit Schools Stadiums Fortune 500 · Circle radius: 6.0 mi

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What this means for you Summary

Snapshot

This is a 4-bed/2.0-bath single-family listed at $277k. Condition is rated excellent.

Deal economics

At list price, monthly cash flow is $-567 ($-7k/yr) — negative.
To cash-flow at today's rent, offer at most $195k (29.6% below list).
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $176k (36.5% below list).
Recommended offer: $176k (36.5% below list) — sets the bar for 1% rule.

Location & tenants

Location reads 70/100 on livability (#350 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: employment D+, amenities F, commute F.
Sulphur Springs ISD (town): math 46% / reading 40% proficiency, ranked #323 of 826 in TX (top 39%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Zoned schools: Travis Pri (math 8% / reading 17%, grade F, #4,180 of 4,322 statewide, top 97%, 267 students, 82% FRL); Sulphur Springs Middle (math 50% / reading 38%, grade D, #512 of 1,662 statewide, top 32%, 974 students, 61% FRL); Sulphur Springs H S (math 53% / reading 50%, grade D+, #478 of 1,632 statewide, top 29%, 1,263 students, 53% FRL).
Market conditions: 453 active listings in the ZIP; 66 units permitted in Hopkins County in 2024 (0 in 5+ unit buildings).
This rent runs 30% of the median local income ($70k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
Hopkins County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

Negotiation context

It's been on market 71 days — a 6% lower offer ($260k) is reasonable based on typical stale-listing flexibility.

Recommended offer $175,679 (36.5% below list)

Questions for the 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 71 days. Have you received any prior offers? Is the seller open to a 37% 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 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?
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.

Investment metrics

1% rule: 0.63% ✗
Cap rate: 3.84%
Cash-on-cash: -8.77%
DSCR: 0.61
GRM: 13.1

CMA / ARV

ARV (median comp): $287,154
List price: $276,871
Delta: -3.58%
Verdict: FAIR
Comps: 20 within 1.0 mi

Show comp detail 8 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
2127 Hollyberry Dr	0.13mi	4/2.0	1,473 (0%)	6mo	$250,086	$170	89
2115 Hollyberry	0.12mi	4/2.0	1,473 (0%)	6mo	$246,805	$168	89
2131 Hollyberry Dr	0.12mi	3/2.0 (-1)	1,269 (-14%)	1mo	$260,496	$205	66
2116 Redwood	0.18mi	3/2.0 (-1)	1,269 (-14%)	1mo	$260,279	$205	62
2111 Hollyberry Dr	0.12mi	3/2.0 (-1)	1,660 (+13%)	8mo	$267,378	$161	62
2123 Hollyberry Dr	0.11mi	3/2.0 (-1)	1,660 (+13%)	8mo	$265,378	$160	62
467 Cypress	0.09mi	3/2.0 (-1)	1,269 (-14%)	7mo	$236,265	$186	62
105 Stonebriar Dr	0.44mi	3/2.0 (-1)	1,615 (+10%)	1mo	$273,000	$169	57

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

IRR: -31.8%
Equity multiple: -0.04×
Total profit: $-80,896
Equity at exit: $41,282

10-year hold

IRR: -36.0%
Equity multiple: -0.51×
Total profit: $-116,695
Equity at exit: $23,939

Cash invested: $77,524 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

Overall (STATE): 87 Strongly Landlord-Friendly
State Texas: 87 Strongly Landlord-Friendly · R+5
County: — inherits STATE
City: — inherits STATE

3-day notice; statewide preemption; one of the fastest eviction climates; Travis County (Austin) slightly slower.

Methodology + full state rankings →

Buyer's market Market conditions within 1.0 mi — comparable homes for sale

Active competition Active MLS

For sale now: 9 active · 5 under contract
Months of supply: 9.0 mo (11%/mo absorbed)
Median asking: $278,371 ($189/sqft)
Median days on market: 81 d
This list price: 33% of active listings are priced below it
ARV vs active asking: +3.2% vs current asking $/sqft

Closed sales set the value; these active listings set current market conditions and a practical price ceiling.

ZIP-level market 75482

Active inventory: 453
Price-to-rent: 13.1×

Monthly cashflow live

Estimated rent: $1,757 medium interval (Pro) →
Mortgage (P&I): −$1,452
Tax est. 1.5%: −$346 /mo · $4,153/yr
Insurance: −$115
HOA: −$41
Lot rent: −$0
Vacancy / Maint / Mgmt: −$369
Net cashflow: $-567

Break-even live

Break-even rent $2,474

Max offer price $194,893

Occupancy floor —

Sensitivity live

Price	-10% $-375	-5% $-471	+0% $-567	+5% $-662	+10% $-758
Rent	-10% $-705	-5% $-636	+0% $-567	+5% $-497	+10% $-428
Rate	-1.0pp $-427	-0.5pp $-496	base $-567	+0.5pp $-638	+1.0pp $-711

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

Down payment: $69,218
Closing costs: $8,306
Club membership (one-time): —
Reserves months: —
Total cash needed: —

Loan-product check · same deal, 3 products live

Conventional

25% down · 7.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Personal DTI + credit; lowest rate.

DSCR

20% down · 8.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

No personal income docs; deal must DSCR.

Hard money

10% down · 12.0% · 12mo

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Short-term bridge; refi at stabilization.

Property features AI

Finance

Financial info: Treat as clear loan typeNo second mortgage indicated
HOA & community: Mandatory associationAnnual HOA fee ($495) — includes maintenance of structuresHOA managed by Gulf Professionals

Exterior

Parking: Attached 2-car garage with garage door opener2 covered parking spaces
Security: Smoke detectorsCarbon monoxide detectors
Utilities: City waterCity sewerIndividual water meterElectricity availableUnderground utilitiesCurbs and sidewalks
Home design: Single family residenceResidential propertyOne storyNew construction (incomplete)
Construction: Brick and siding exteriorComposition roofSlab foundationYear built: 2026
Exterior features: GuttersPrivate yardWood fenced backyardInterior lot

Interior

Kitchen: DishwasherDisposalElectric cooktopElectric ovenMicrowave
Bedrooms: 4 bedrooms (all on main level)Primary bedroom with separate shower and walk-in closet
Flooring: CarpetCeramic tileLuxury vinyl plank
Bathrooms: 2 full bathrooms
Heating & cooling: Central heating (electric)Central airCeiling fans
Interior features: Pantry7 total roomsOne-level layout1 living area1 dining area
Laundry & utility: Washer hookupElectric dryer hookupSeparate utility room

Listing history 50 events

2026-08-08

days on market $276,871 Active 71 DOM
2026-08-07

days on market $276,871 Active 70 DOM
2026-08-06

days on market $276,871 Active 69 DOM
2026-08-05

days on market $276,871 Active 68 DOM
2026-08-04

days on market $276,871 Active 67 DOM
2026-08-03

days on market $276,871 Active 66 DOM
2026-07-31

days on market $276,871 Active 63 DOM
2026-07-30

days on market $276,871 Active 62 DOM
2026-07-29

days on market $276,871 Active 61 DOM
2026-07-27

days on market $276,871 Active 59 DOM
2026-07-25

days on market $276,871 Active 57 DOM
2026-07-24

days on market $276,871 Active 56 DOM
2026-07-23

days on market $276,871 Active 55 DOM
2026-07-22

days on market $276,871 Active 54 DOM
2026-07-21

days on market $276,871 Active 53 DOM
2026-07-18

days on market $276,871 Active 50 DOM
2026-07-16

days on market $276,871 Active 48 DOM
2026-07-15

days on market $276,871 Active 47 DOM
2026-07-14

days on market $276,871 Active 46 DOM
2026-07-13

days on market $276,871 Active 45 DOM
2026-07-12

days on market $276,871 Active 44 DOM
2026-07-11

days on market $276,871 Active 43 DOM
2026-07-11

days on market $276,871 Active 42 DOM
2026-07-09

days on market $276,871 Active 41 DOM
2026-07-08

days on market $276,871 Active 40 DOM
2026-07-07

days on market $276,871 Active 39 DOM
2026-07-06

days on market $276,871 Active 38 DOM
2026-07-05

days on market $276,871 Active 37 DOM
2026-07-04

days on market $276,871 Active 36 DOM
2026-07-03

days on market $276,871 Active 35 DOM
2026-07-03

days on market $276,871 Active 34 DOM
2026-07-01

days on market $276,871 Active 33 DOM
2026-06-30

days on market $276,871 Active 32 DOM
2026-06-29

days on market $276,871 Active 31 DOM
2026-06-28

days on market $276,871 Active 30 DOM
2026-06-27

days on market $276,871 Active 29 DOM
2026-06-26

days on market $276,871 Active 27 DOM
2026-06-22

days on market $276,871 Active 24 DOM
2026-06-21

days on market $276,871 Active 23 DOM
2026-06-19

days on market $276,871 Active 21 DOM
2026-06-18

days on market $276,871 Active 20 DOM
2026-06-17

days on market $276,871 Active 19 DOM
2026-06-16

days on market $276,871 Active 18 DOM
2026-06-15

days on market $276,871 Active 17 DOM
2026-06-14

days on market $276,871 Active 15 DOM
2026-06-12

days on market $276,871 Active 14 DOM
2026-06-09

days on market $276,871 Active 11 DOM
2026-06-08

days on market $276,871 Active 10 DOM
2026-06-07

days on market $276,871 Active 9 DOM
2026-06-07

days on market $276,871 Active 8 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Nearby sold comps map

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Walkable amenities ~0.75 mi

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Taxation est. · year 1

Rental income: $21,081
− Mortgage interest: −$15,509
− Property taxes: −$4,153
− Insurance: −$1,384
− Repairs & maintenance: −$1,687
− Management: −$1,687
− HOA: −$492
− Depreciation: −$8,054
Taxable loss: −$11,884

Your marginal tax rate % combined federal + state — saved on this device

Est. tax savings @ 24.0%: +$2,852
After-tax cash flow: $-3,946/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 2 photos

Excellent 100/100 None rehab

This new construction home is move-in ready with a beautiful Mansfield floorplan, offering 1,473 square feet of modern comfort and functionality.

F Composite school gradezoned avg 36/100

Zoned Schools

Elementary Travis Pri F TX #4,180/4,322 Nat'l #37,719/41,679 Middle Sulphur Springs Middle D TX #512/1,662 Nat'l #4,963/14,009 High Sulphur Springs H S D+ TX #478/1,632 Nat'l #5,269/17,239

Schools (NCES district)

District: Sulphur Springs ISD
NCES district ID: 4841820
Math proficiency: 46% ▼ -7.00%
Reading proficiency: 40% ▼ -4.00%
Median HH income: $42,871
Composite: 36.33/100
National rank: #4692
State rank: #323 of 826 in TX

B Composite livability gradescore 70/100

Livability — Sulphur Springs

Score: 70/100
State rank: #350
US rank: #7665

Category grades

Amenities F Commute F Cost of living A+ Crime A Employment D+ Housing A+ Health & safety D- User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

County: Hopkins County · 38,107 people
City population: 26,483
Metro: Sulphur Springs, TX
Population (ZIP): 26,483
Household income: $69,970
Rent vs Own: 33.5% rent · 66.5% own
Severe rent burden: 6% of renters

Population outlook (Hopkins County) Hauer SSP2

Today (2025): 38,107 people
By 2030: 38,867 · +2.0%
By 2040: 40,009 · +5.0%
By 2050: 40,448 · +6.1%
By 2075: 40,669 · +6.7%
By 2100: 37,234 · -2.3%

Race, ethnicity, and origin ACS 2023

Neighborhood character: Predominantly White (70%)
Race & ethnicity: White 70% Hispanic / Latino 17% Black 9% Two or more races 7% Asian 1%
Hispanic origin (detail): Mexican 15%
Common ancestry: Slovak 2% Lithuanian 2% Iranian 1%
Foreign-born: 9% · Canada, Vietnam
Languages at home: 84% English-only · Spanish 14% Vietnamese 1%

Political lean MEDSL · Hopkins

2024 margin: Solid R (+64.6) · D 17.4% · R 82.0%
2008→2024 swing: -20.0pp toward R · 2008: -44.7pp · 2024: -64.6pp
All cycles: 2024: R+64.6 2020: R+60.7 2016: R+60.8 2012: R+55.4 2008: R+44.7

Not yet ingested

Civics: —

Market trends

HPI YoY: ▼ -125.79%
Current HPI: 156.0526
Rent YoY: —
Metro: Sulphur Springs, TX
State GDP YoY: ▲ 3.95%
F500 in state: 110

Industry mix (Fortune 500 HQ in TX)

Industry	F500 HQs	Revenue
Energy	16	$1,198B
#8 Exxon Mobil Spring $349.6B #16 Chevron Houston $202.8B #28 Phillips 66 Houston $145.5B #34 Valero Energy San Antonio $124.0B #53 Energy Transfer Dallas $82.7B #75 ConocoPhillips Houston $57.0B #78 Enterprise Products Partners Houston $56.2B #92 Plains GP Holdings Houston $50.1B #134 HF Sinclair Dallas $29.6B #142 Occidental Petroleum Houston $26.3B #173 Targa Resources Houston $19.4B #188 Cheniere Energy Houston $17.6B #239 Kinder Morgan Houston $15.3B #419 APA Corporation Houston $8.6B #393 Cabot Oil & Gas Houston $7.9B #455 Coterra Energy Houston $5.8B
Technology	5	$198B
#44 Dell Technologies Round Rock $95.6B #87 Oracle Austin $53.0B #132 Hewlett Packard Enterprise Spring $30.1B #193 Texas Instruments Dallas $16.3B #406 Match Group Dallas $3.4B
Engineering / Construction	4	$72B
#228 Quanta Services Houston $23.7B #258 Jacobs Solutions Dallas $16.3B #318 AECOM Dallas $16.1B #279 Fluor Irving $16.1B
Energy Services	3	$60B
#136 Baker Hughes Houston $28.5B #154 Halliburton Houston $23.1B #368 Smith International Houston $8.4B
Utilities	3	$41B
#194 Vistra Irving $16.3B #211 NRG Energy Houston $15.4B #259 CenterPoint Energy Houston $9.4B
Healthcare	2	$330B
#9 McKesson Irving $309.0B #163 Tenet Healthcare Dallas $20.6B

Price history

1 event — show timeline

2026-05-29 Listed $276,871 NTREIS

Cash-flow waterfall

monthly

Sold comps — $/sqft

last 12 mo · ≤1 mi

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