Napali Plan

Marion, TX 78124

$306,999F

5 bd · 3.0 ba · 2,524 sqft · Built — · SingleFamily · Active · 241 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,905/mo
• Mortgage (P&I): −$2,554
• Tax + insurance: −$812
• HOA: −$0
• Vac / Maint / Mgmt: −$400
• Net cashflow: $-1,861/mo
• Annual: $-22,327/yr
• Cap rate: 1.71%
• Cash-on-cash: -16.37%
• DSCR: 0.27
• 1% rule: 0.39%
• Cash to close: $136,353

Investor read

• This is a 5-bed/3.0-bath single-family listed at $307k. Condition is rated excellent.
• At list price, monthly cash flow is $-2k ($-22k/yr) — negative.
• To cash-flow at today's rent, offer at most $218k (29.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $190k (38.0% below list).
• It's been on market 241 days — a 12% lower offer ($270k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $190k (38.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#614 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Marion ISD (suburban): math 44% / reading 47% proficiency, ranked #243 of 826 in TX (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Norma Krueger El (362 students, 50% FRL); Marion Middle (math 37% / reading 45%, grade F, #613 of 1,662 statewide, top 38%, 372 students, 41% FRL); Marion H S (math 47% / reading 62%, grade C-, #379 of 1,632 statewide, top 26%, 456 students, 36% FRL) — zoned schools at 42% FRL track the district average.
• Market conditions: 535 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 64d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 2,064 units permitted in Guadalupe County in 2024 (133 in 5+ unit buildings).
• Guadalupe County population projected at +61% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 1.7% vs local median 4.5% in Marion — 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 241 days. Have you received any prior offers? Is the seller open to a 38% 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.
• 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.