117, 121, 129 A, B, C & D Kalyn Rd

Huntsville, TX 77340

$448,500C+

3 bd · 2.0 ba · — sqft · Built 2016 · MultiFamily · Active · 74 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,720/mo
• Mortgage (P&I): −$2,352
• Tax + insurance: −$748
• HOA: −$0
• Vac / Maint / Mgmt: −$1,201
• Net cashflow: $1,419/mo
• Annual: $17,032/yr
• Cap rate: 10.09%
• Cash-on-cash: 13.56%
• DSCR: 1.60
• 1% rule: 1.28%
• Cash to close: $125,580

Investor read

• This is a 3-bed/2.0-bath multifamily listed at $448k. Condition is rated fair.
• At list price, monthly cash flow is $1k ($17k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $448k).
• It's been on market 74 days — a 6% lower offer ($422k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $422k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k 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-, schools D-, crime D-.
• 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.
• Market conditions: Rents rising (+1.3%/yr); 600 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 10.1% vs local median 2.6% 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.
• At $5,720/mo this rent would consume 141% of the median local household income ($49k/yr) (locally 1961% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 74 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Visible damage and potential leaks.
• Major: exterior siding — Peeling and in need of repainting.
• Major: flooring — Worn and in need of replacement.
• Major: interior walls/paint — Peeling paint and potential water damage.
• Major: landscaping — Overgrown and in need of trimming and maintenance.
• Major: fencing — In poor condition and may need repair or replacement.