8134 Grotto Dr

Royse City, TX 75189

$337,000F

3 bd · 2.0 ba · 2,145 sqft · Built 2024 · SingleFamily · Active · 68 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,247/mo
• Mortgage (P&I): −$1,767
• Tax + insurance: −$768
• HOA: −$50
• Vac / Maint / Mgmt: −$472
• Net cashflow: $-810/mo
• Annual: $-9,720/yr
• Cap rate: 3.41%
• Cash-on-cash: -10.30%
• DSCR: 0.54
• 1% rule: 0.67%
• Cash to close: $94,360

Investor read

• This is a 3-bed/2.0-bath single-family listed at $337k.
• At list price, monthly cash flow is $-810 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $194k (42.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $225k (33.3% below list).
• It's been on market 68 days — a 6% lower offer ($317k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $194k (42.5% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#158 in TX, #4,292 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: schools C-, amenities F, commute F.
• Royse City ISD (rural): math 42% / reading 42% proficiency, ranked #266 of 826 in TX (top 32%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents soft (-1.1%/yr); 1301 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.

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 68 days. Have you received any prior offers? Is the seller open to a 42% 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.
• 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.