2227 Quail Valley East Dr

Missouri City, TX 77459

$238,000D+

4 bd · 2.0 ba · 1,862 sqft · Built 1975 · SingleFamily · Active · 166 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,304/mo
• Mortgage (P&I): −$1,248
• Tax + insurance: −$564
• HOA: −$10
• Vac / Maint / Mgmt: −$484
• Net cashflow: $-2/mo
• Annual: $-20/yr
• Cap rate: 6.28%
• Cash-on-cash: -0.03%
• DSCR: 1.00
• 1% rule: 0.97%
• Cash to close: $66,640

Investor read

• This is a 4-bed/2.0-bath single-family listed at $238k.
• At list price, monthly cash flow is $-2 ($-20/yr) — negative.
• To cash-flow at today's rent, offer at most $238k (0.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $230k (3.2% below list).
• It's been on market 166 days — a 12% lower offer ($209k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $209k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.7%/yr); year-one equity from $2k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#526 in TX) — a middle-class / working-renter tenant base. Strengths: housing A+, crime A, employment A; Watch: amenities F, commute F, health & safety F.
• Fort Bend ISD (suburban): math 44% / reading 53% proficiency, ranked #140 of 826 in TX (top 17%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lantern Lane El (math 17% / reading 37%, grade F, #2,791 of 4,322 statewide, top 68%, 472 students, 77% FRL); Quail Valley Middle (math 55% / reading 57%, grade B-, #234 of 1,662 statewide, top 14%, 1,043 students, 45% FRL); Lawrence E Elkins H S (math 54% / reading 72%, grade B-, #231 of 1,632 statewide, top 14%, 2,654 students, 30% FRL) — zoned schools average 51% FRL vs 35% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents soft (-0.1%/yr); 1229 active listings in the ZIP; 14 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); 43% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 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.
• 5 sale attempts since 5y ago 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.
• Climate carrying-cost: severe wind risk, 99% 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 6.3% vs local median 3.6% in Missouri City — 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.

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 166 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?