1035 Brandywine Ct

Elgin, TX 78621

$600,000D-

4 bd · 2.5 ba · 2,383 sqft · Built 2025 · SingleFamily · Active · 271 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,283/mo
• Mortgage (P&I): −$3,146
• Tax + insurance: −$536
• HOA: −$40
• Vac / Maint / Mgmt: −$479
• Net cashflow: $-1,919/mo
• Annual: $-23,025/yr
• Cap rate: 2.46%
• Cash-on-cash: -13.71%
• DSCR: 0.39
• 1% rule: 0.38%
• Cash to close: $168,000

Investor read

• This is a 4-bed/2.5-bath single-family listed at $600k.
• At list price, monthly cash flow is $-2k ($-23k/yr) — negative.
• To cash-flow at today's rent, offer at most $261k (56.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $228k (62.0% below list).
• It's been on market 271 days — a 12% lower offer ($528k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $228k (62.0% below list) — sets the bar for 1% rule.
• In year one you build about $64k of equity ($4k loan paydown + $60k appreciation (10.0% local appreciation)).
• Location reads 74/100 on livability (#167 in TX, #4,404 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Lexington ISD (rural): math 51% / reading 48% proficiency, ranked #184 of 826 in TX (top 22%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lexington El (math 54% / reading 50%, grade C-, #742 of 4,322 statewide, top 19%, 498 students, 44% FRL); Lexington Middle (math 48% / reading 45%, grade D+, #443 of 1,662 statewide, top 28%, 242 students, 44% FRL); Lexington H S (math 52% / reading 52%, grade D+, #447 of 1,632 statewide, top 29%, 344 students, 32% FRL) — zoned schools at 40% FRL track the district average.
• Market conditions: Rents rising (+3.1%/yr); 814 active listings in the ZIP; solid renter incomes; 18 units permitted in Lee County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts; this cycle's ask is 23900% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• By year 2, paydown + projected appreciation supports a ~$103k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.5% vs local median 4.4% in Elgin — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 271 days. Have you received any prior offers? Is the seller open to a 62% 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 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.