4514 Sky Harbor Dr

Rockwall, TX 75087

$749,000D

6 bd · 5.0 ba · 3,962 sqft · Built 2022 · SingleFamily · Active · 283 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,694/mo
• Mortgage (P&I): −$3,928
• Tax + insurance: −$1,486
• HOA: −$58
• Vac / Maint / Mgmt: −$1,196
• Net cashflow: $-973/mo
• Annual: $-11,677/yr
• Cap rate: 4.73%
• Cash-on-cash: -5.57%
• DSCR: 0.75
• 1% rule: 0.76%
• Cash to close: $209,720

Investor read

• This is a 6-bed/5.0-bath single-family listed at $749k.
• At list price, monthly cash flow is $-973 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $577k (23.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $569k (24.0% below list).
• It's been on market 283 days — a 12% lower offer ($659k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $569k (24.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#86 in TX, #3,043 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A-; Watch: amenities F, commute F.
• Rockwall ISD (suburban): math 54% / reading 54% proficiency, ranked #83 of 826 in TX (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Celia Hays El (math 62% / reading 59%, grade B-, #385 of 4,322 statewide, top 9%, 517 students, 11% FRL); J W Williams Middle (math 51% / reading 55%, grade C+, #281 of 1,662 statewide, top 18%, 828 students, 21% FRL); Rockwall-Heath H S (math 50% / reading 61%, grade C, #364 of 1,632 statewide, top 23%, 2,912 students, 28% FRL) — zoned schools at 20% FRL track the district average.
• Market conditions: Rents rising (+3.2%/yr); 1011 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 80% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 1,810 units permitted in Rockwall County in 2024 (0 in 5+ unit buildings).
• Rockwall County population projected at +56% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.7% vs local median 2.9% in Rockwall — 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 $5,694/mo this rent would consume 53% of the median local household income ($129k/yr) (locally 646% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 283 days. Have you received any prior offers? Is the seller open to a 24% 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 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?
• 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.