5014 Palamedes Swallowtail Ln

Pleak, TX 77461

$206,391D-

3 bd · 2.0 ba · 1,451 sqft · Built 2026 · SingleFamily · Pending · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,200/mo
• Mortgage (P&I): −$1,236
• Tax + insurance: −$393
• HOA: −$183
• Vac / Maint / Mgmt: −$462
• Net cashflow: $-73/mo
• Annual: $-879/yr
• Cap rate: 5.92%
• Cash-on-cash: -1.33%
• DSCR: 0.94
• 1% rule: 0.93%
• Cash to close: $65,972

Investor read

• This is a 3-bed/2.0-bath single-family listed at $206k. Condition is rated fair.
• At list price, monthly cash flow is $-73 ($-879/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $206k).
• It's been on market 28 days — a 2% lower offer ($203k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $203k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#1,221 in TX) — a working-class tenant base; expect higher turnover. Strengths: crime A+, housing A+, cost of living A; Watch: employment C-, amenities F, commute F.
• Needville ISD (rural): math 55% / reading 55% proficiency, ranked #95 of 826 in TX (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Needville El (math 58% / reading 53%, grade C, #587 of 4,322 statewide, top 14%, 1,129 students, 49% FRL); Needville H S (math 50% / reading 56%, grade C-, #437 of 1,632 statewide, top 27%, 1,067 students, 41% FRL).
• Market conditions: 337 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 2 sale attempts; this cycle's ask has dropped $30k (13%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• 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 5.9% vs local median 3.8% in Pleak — 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Light wear and tear
• Minor: Kitchen countertops — Light wear and tear
• Minor: Bathroom tiles — Some discoloration
• Minor: Exterior siding — Some discoloration
• Minor: Hardwood floors — Worn appearance
• Minor: Paint on interior walls — Faded appearance