Sentosa Plan

Beasley, TX 77417

$265,990C+

4 bd · 2.0 ba · 1,644 sqft · Built — · SingleFamily · Active · 546 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,965/mo
• Mortgage (P&I): −$1,497
• Tax + insurance: −$476
• HOA: −$0
• Vac / Maint / Mgmt: −$623
• Net cashflow: $369/mo
• Annual: $4,433/yr
• Cap rate: 7.85%
• Cash-on-cash: 5.55%
• DSCR: 1.25
• 1% rule: 1.04%
• Cash to close: $79,935

Investor read

• This is a 4-bed/2.0-bath single-family listed at $266k. Condition is rated excellent.
• At list price, monthly cash flow is $369 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $266k).
• It's been on market 546 days — a 12% lower offer ($234k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $234k (12.0% below list) — sets the bar for market timing.
• In year one you build about $14k of equity ($2k loan paydown + $12k appreciation (4.2% local appreciation)).
• Location reads 57/100 on livability (#1,273 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A; Watch: employment C-, amenities F, commute F.
• Lamar CISD (suburban): math 50% / reading 53% proficiency, ranked #116 of 826 in TX (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Beasley El (math 42% / reading 27%, grade F, #1,995 of 4,322 statewide, top 50%, 366 students, 86% FRL); Lamar J H (math 30% / reading 34%, grade F, #971 of 1,662 statewide, top 60%, 1,246 students, 71% FRL); Lamar Cons H S (math 26% / reading 48%, grade F, #897 of 1,632 statewide, top 57%, 1,762 students, 62% FRL) — zoned schools average 73% FRL vs 43% district-wide (30 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 34% at this address vs 52% district-wide (-17 pts) — the specific schools serving this property underperform the Lamar CISD average; the district grade overstates school quality for this exact location.
• Market conditions: 304 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 12,093 units permitted in Fort Bend County in 2024 (815 in 5+ unit buildings).
• Fort Bend County population projected at +75% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (4.2% appreciation + 3.0% rent growth), your $80k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 7.8% vs local median 5.7% in Beasley — 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.
• At $2,965/mo this rent would consume 59% of the median local household income ($61k/yr) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 546 days. Have you received any prior offers? Is the seller open to a 12% 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?
• 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.