40723 Barley Straw Dr · Magnolia, TX 77354

$273,990

4 bd · 2.0 ba · 1,655 sqft · SingleFamily · 83 Days on market

Built 2026 Excellent condition 6,342 sqft lot $166/sqft · at area comps Est $272k · at est. $63/mo HOA · 2% of rent

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Why this score? — see what drove the C 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).

• Cash flow +14.6/30.0
• Appreciation +10.0/10.0
• ARV discount +7.2/15.0
• Condition / age +5.0/5.0
• DSCR +4.4/10.0
• 1% rule +4.3/10.0
• Schools +3.9/10.0
• Livability +3.7/5.0
• Rent growth +2.6/5.0

Listing remarks MLS

FANTASTIC BRAND NEW D.R. HORTON HOM E IN MILL CREEK! GREAT ONE STORY FLOORPLAN! Offers the perfect blend of space and comfort. Featuring 4 bedrooms and 2 bathrooms, this home is designed for modern living. The heart of the home is the spacious family area seamlessly connected to the kitchen, creating a warm and inviting atmosphere for family gatherings and entertaining friends. Each bedroom comes with its own closet, providing ample storage space and privacy for everyone in the family. But that's not all – this home is equipped with blinds throughout and includes a Smart Home package, adding convenience and style to your daily life. Experience the ease of controlling your home's features at your fingertips. Don't miss the opportunity! Mill Creek has wonderful amenities for the residents! Great pool, parks, and so much more!

Key facts

• Spacious family area
• Smart home package
• Blinds throughout

Tags

• SPACIOUS FAMILY AREA
• SMART HOME PACKAGE
• BLINDS THROUGHOUT
• MILL CREEK AMENITIES
• POOL
• PARKS

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath single-family listed at $274k. Condition is rated excellent.

Deal economics

• At list price, monthly cash flow is $64 ($772/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $256k (6.6% below list).
• Recommended offer: $256k (6.6% below list) — sets the bar for 1% rule.
• Cap rate 6.6% vs local median 3.4% in Magnolia — 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.

Location & tenants

• Location reads 73/100 on livability (#222 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools D+, amenities F, commute F.
• Magnolia ISD (rural): math 42% / reading 45% proficiency, ranked #247 of 826 in TX (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents flat; 1604 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 13,259 units permitted in Montgomery County in 2024 (1,402 in 5+ unit buildings).

Forward outlook

• In year one you build about $29k of equity ($2k loan paydown + $27k appreciation (10.0% local appreciation)).
• Montgomery County population projected at +65% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (10.0% appreciation + 0.3% rent growth), your $77k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$47k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 83 days — a 6% lower offer ($258k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Recommended offer $255,802 (6.6% below list)

Questions for the listing agent

1. It's been on market 83 days. Have you received any prior offers? Is the seller open to a 7% concession, seller financing, or rate buy-down credit?
2. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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.
7. 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.
8. 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: 0.93% ✗
• Cap rate: 6.57%
• Cash-on-cash: 1.01%
• DSCR: 1.04
• GRM: 8.9

CMA / ARV

• ARV (median comp): $271,929
• List price: $273,990
• Delta: 0.76%
• Verdict: FAIR
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
40710 Barley Straw Dr	0.00mi	4/2.0	1,750 (+6%)	2mo	$286,490	$164	88
15122 Rose Willow Ln	0.04mi	3/2.0 (-1)	1,575 (-5%)	2mo	$279,990	$178	84
40731 Barley Straw	0.04mi	4/2.0	1,476 (-11%)	2mo	$264,990	$180	79
15106 Rose Willow Ln	0.04mi	5/2.0 (+1)	1,818 (+10%)	2mo	$281,990	$155	75
15315 Mountain Plover Pl	0.51mi	4/2.5	1,689 (+2%)	1mo	$299,990	$178	70
40504 Warialda Trace Ln	0.25mi	4/2.0	1,820 (+10%)	6mo	$245,000	$135	66
15214 Black Scoter Ct	0.45mi	3/2.0 (-1)	1,614 (-2%)	6mo	$299,900	$186	65
40418 Winding Way Ct	0.47mi	3/2.0 (-1)	1,605 (-3%)	5mo	$350,000	$218	64
40443 Gerygone Ln	0.59mi	3/2.0 (-1)	1,614 (-2%)	6mo	$304,900	$189	59
40511 Tyto Ln	0.57mi	3/2.0 (-1)	1,492 (-10%)	0mo	$235,000	$158	52
15123 Bank Swallow Pl	0.45mi	3/2.0 (-1)	1,826 (+10%)	7mo	$319,370	$175	51
40530 Tyto Ln	0.61mi	3/2.0 (-1)	1,464 (-12%)	1mo	$274,900	$188	46

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

Projected returns pro-forma

10.0% appreciation · 0.32% rent growth · sell at horizon

5-year hold

• IRR: 24.1%
• Equity multiple: 2.91×
• Total profit: $146,680
• Equity at exit: $246,832

10-year hold

• IRR: 20.7%
• Equity multiple: 6.43×
• Total profit: $416,686
• Equity at exit: $532,302

Cash invested: $76,717 (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 →

ZIP-level market 77354

• Home prices YoY: 2.4%
• Rents YoY: 0.3%
• Active inventory: 1604
• Price-to-rent: 8.9×

Monthly cashflow live

• Estimated rent: $2,558 high
• Mortgage (P&I): −$1,437
• Tax est. 1.5%: −$342 /mo · $4,110/yr
• Insurance: −$114
• HOA: −$63
• Vacancy / Maint / Mgmt: −$537
• Net cashflow: $64

Break-even live

Break-even rent $2,477

Max offer price $273,990

Occupancy floor 92%

Sensitivity live

Price	-10% $254	-5% $159	+0% $64	+5% $-30	+10% $-125
Rent	-10% $-138	-5% $-37	+0% $64	+5% $165	+10% $266
Rate	-1.0pp $202	-0.5pp $134	base $64	+0.5pp $-7	+1.0pp $-79

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: $68,498
• Closing costs: $8,220
• Reserves months: —
• Total cash needed: —

Rent comps 6 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
14727 Band Tailed Pigeon Ct Magnolia, TX	4.0	3.0	1942	$2,700	$1.39	44d	1	0.10mi
39899 Mill Creek Rd Magnolia, TX	1.0–3.0	1.0–2.0	1104	$2,726	$2.47	2d	40	0.26mi
40547 Berylline Ln Magnolia, TX	4.0	2.0	1753	$2,300	$1.31	44d	1	0.45mi
40558 Berylline Ln Unit NA Magnolia, TX	3.0	2.0	1499	$2,150	$1.43	25d	1	0.47mi
14983 Clay Harvest Rdg Magnolia, TX	4.0	3.0	2173	$2,375	$1.09	44d	1	0.53mi
40839 Hawthorne Glades St Magnolia, TX	3.0	2.0	1156	$2,100	$1.82	44d	1	0.84mi

HOA detail

• Monthly dues: $63 · $756/yr
• Likely covers: pool

Listing history 16 events

1. 2026-06-18
   days on market $273,990 Active 83 DOM
2. 2026-06-17
   days on market $273,990 Active 82 DOM
3. 2026-06-16
   days on market $273,990 Active 81 DOM
4. 2026-06-15
   days on market $273,990 Active 80 DOM
5. 2026-06-13
   days on market $273,990 Active 78 DOM
6. 2026-06-09
   days on market $273,990 Active 74 DOM
7. 2026-06-08
   days on market $273,990 Active 73 DOM
8. 2026-06-07
   days on market $273,990 Active 72 DOM
9. 2026-06-04
   days on market $273,990 Active 69 DOM
10. 2026-06-03
    days on market $273,990 Active 68 DOM
11. 2026-06-02
    days on market $273,990 Active 67 DOM
12. 2026-06-01
    days on market $273,990 Active 66 DOM
13. 2026-05-31
    days on market $273,990 Active 65 DOM
14. 2026-05-02
    status Active 841-char remark

    Show marketing remark (841 chars)

    FANTASTIC BRAND NEW D.R. HORTON HOM E IN MILL CREEK! GREAT ONE STORY FLOORPLAN! Offers the perfect blend of space and comfort. Featuring 4 bedrooms and 2 bathrooms, this home is designed for modern living. The heart of the home is the spacious family area seamlessly connected to the kitchen, creating a warm and inviting atmosphere for family gatherings and entertaining friends. Each bedroom comes with its own closet, providing ample storage space and privacy for everyone in the family. But that's not all – this home is equipped with blinds throughout and includes a Smart Home package, adding convenience and style to your daily life. Experience the ease of controlling your home's features at your fingertips. Don't miss the opportunity! Mill Creek has wonderful amenities for the residents! Great pool, parks, and so much more!

15. 2026-04-25
    historical Active Under Contract 841-char remark

    Show marketing remark (841 chars)

    FANTASTIC BRAND NEW D.R. HORTON HOM E IN MILL CREEK! GREAT ONE STORY FLOORPLAN! Offers the perfect blend of space and comfort. Featuring 4 bedrooms and 2 bathrooms, this home is designed for modern living. The heart of the home is the spacious family area seamlessly connected to the kitchen, creating a warm and inviting atmosphere for family gatherings and entertaining friends. Each bedroom comes with its own closet, providing ample storage space and privacy for everyone in the family. But that's not all – this home is equipped with blinds throughout and includes a Smart Home package, adding convenience and style to your daily life. Experience the ease of controlling your home's features at your fingertips. Don't miss the opportunity! Mill Creek has wonderful amenities for the residents! Great pool, parks, and so much more!

16. 2026-03-27
    listed $273,990 Active 841-char remark

    Show marketing remark (841 chars)

    FANTASTIC BRAND NEW D.R. HORTON HOM E IN MILL CREEK! GREAT ONE STORY FLOORPLAN! Offers the perfect blend of space and comfort. Featuring 4 bedrooms and 2 bathrooms, this home is designed for modern living. The heart of the home is the spacious family area seamlessly connected to the kitchen, creating a warm and inviting atmosphere for family gatherings and entertaining friends. Each bedroom comes with its own closet, providing ample storage space and privacy for everyone in the family. But that's not all – this home is equipped with blinds throughout and includes a Smart Home package, adding convenience and style to your daily life. Experience the ease of controlling your home's features at your fingertips. Don't miss the opportunity! Mill Creek has wonderful amenities for the residents! Great pool, parks, and so much more!

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

Taxation est. · year 1

• Rental income: $30,696
• − Mortgage interest: −$15,348
• − Property taxes: −$4,110
• − Insurance: −$1,370
• − Repairs & maintenance: −$2,456
• − Management: −$2,456
• − HOA: −$756
• − Depreciation: −$7,971
• Taxable loss: −$3,769
• Est. tax savings @ 24.0%: +$905
• After-tax cash flow: $1,677/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 · 12 photos

Excellent 100/100 None rehab

This brand new D.R. Horton home in Mill Creek is move-in ready with modern finishes and a smart home package, making it an excellent investment for both resale and rental.

Value-add opportunities

• Both Smart Home package — Enhances convenience and adds modern appeal
• Both Smart thermostat — Improves energy efficiency and comfort
• Both Smart lighting system — Enhances energy efficiency and ambiance

Renovation cost estimate screening

Value-add ROI direction

• Both Smart Home package — Enhances convenience and adds modern appeal ↑
• Both Smart thermostat — Improves energy efficiency and comfort ↑
• Both Smart lighting system — Enhances energy efficiency and ambiance ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Magnolia ISD
• NCES district ID: 4828740
• Math proficiency: 42% ▼ -7.00%
• Reading proficiency: 45% ▼ -4.00%
• Median HH income: $71,692
• Composite: 39.46/100
• National rank: #3958
• State rank: #247 of 826 in TX

Livability — Magnolia

• Score: 73/100
• State rank: #222
• US rank: #5442

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• County: Montgomery County · 663,713 people
• City population: 32,847
• Metro: Houston-The Woodlands-Sugar Land, TX
• Population (ZIP): 44,900
• Household income: $112,504
• Rent vs Own: 20.1% rent · 79.9% own
• Severe rent burden: 586.0

Population outlook (Montgomery County) Hauer SSP2

• Today (2025): 713,896 people
• By 2030: 805,263 · +12.8%
• By 2040: 992,708 · +39.1%
• By 2050: 1,179,590 · +65.2%
• By 2075: 1,628,084 · +128.1%
• By 2100: 1,937,880 · +171.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (66%)
• Race & ethnicity: White 66% Hispanic / Latino 25% Two or more races 18% Black 3% Asian 1%
• Hispanic origin (detail): Mexican 14% Puerto Rican 1%
• Common ancestry: Lithuanian 4% Slovak 2% Italian 2%
• Foreign-born: 11% · Canada, Vietnam
• Languages at home: 83% English-only · Spanish 15% Other Indo-European 1% German/W. Germanic 1%

Political lean MEDSL · Montgomery

• 2024 margin: Solid R (+45.5) · D 26.8% · R 72.3%
• 2008→2024 swing: +7.2pp toward D · 2008: -52.7pp · 2024: -45.5pp
• All cycles: 2024: R+45.5 2020: R+43.8 2016: R+51.4 2012: R+60.7 2008: R+52.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 12.09%
• Current HPI: 512.87
• Rent YoY: ▲ 0.32%
• Metro: Houston-The Woodlands-Sugar Land, 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
▸Technology	5	$198B
▸Engineering / Construction	4	$72B
▸Energy Services	3	$60B
▸Utilities	3	$41B
▸Healthcare	2	$330B

Price history

3 events — show timeline

• 2026-05-02 Relisted — HARMLS
• 2026-04-25 Contingent — HARMLS
• 2026-03-27 Listed $273,990 HARMLS