16723 Lone Quail Ct

Houston, TX 77489

$234,000D

3 bd · 2.0 ba · 1,662 sqft · Built 1983 · SingleFamily · Active · 82 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,998/mo
• Mortgage (P&I): −$1,227
• Tax + insurance: −$390
• HOA: −$34
• Vac / Maint / Mgmt: −$420
• Net cashflow: $-72/mo
• Annual: $-869/yr
• Cap rate: 5.92%
• Cash-on-cash: -1.33%
• DSCR: 0.94
• 1% rule: 0.85%
• Cash to close: $65,520

Investor read

• This is a 3-bed/2.0-bath single-family listed at $234k.
• At list price, monthly cash flow is $-72 ($-869/yr) — negative.
• To cash-flow at today's rent, offer at most $221k (5.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $200k (14.6% below list).
• It's been on market 82 days — a 6% lower offer ($220k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $200k (14.6% below list) — sets the bar for 1% rule.
• In year one you build about $328 of equity ($2k loan paydown + $-1k appreciation (-0.6% local appreciation)).
• Location reads 74/100 on livability (#184 in TX, #4,771 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, cost of living A+, housing A+; Watch: crime 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: Edgar Glover Jr El (math 42% / reading 37%, grade F, #1,545 of 4,322 statewide, top 38%, 380 students, 87% FRL); Missouri City Middle (math 19% / reading 35%, grade F, #1,177 of 1,662 statewide, top 72%, 963 students, 88% FRL); Fort Bend Co Alter (26 students, 0% FRL) — zoned schools average 58% FRL vs 35% district-wide (24 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 33% at this address vs 48% district-wide (-15 pts) — the specific schools serving this property underperform the Fort Bend ISD average; the district grade overstates school quality for this exact location.
• Market conditions: Rents flat; 188 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• Climate carrying-cost: moderate flood risk; 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 5.9% vs local median 3.2% in Houston — 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.
• This rent runs 32% of the median local income ($75k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 82 days. Have you received any prior offers? Is the seller open to a 15% 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 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 F 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?
• 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?