706 Universal St

Navasota, TX 77868

$660,900D

9 bd · 7.5 ba · 4,635 sqft · Built 2026 · MultiFamily · Active · 82 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,874/mo
• Mortgage (P&I): −$3,466
• Tax + insurance: −$1,102
• HOA: −$0
• Vac / Maint / Mgmt: −$1,234
• Net cashflow: $73/mo
• Annual: $878/yr
• Cap rate: 6.43%
• Cash-on-cash: 0.47%
• DSCR: 1.02
• 1% rule: 0.89%
• Cash to close: $185,052

Investor read

• This is a 3 × 3.0-bed/2.5-bath units multifamily listed at $661k. Condition is rated excellent.
• At list price, monthly cash flow is $73 ($878/yr) — positive. Per door: $24/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $587k (11.1% below list).
• It's been on market 82 days — a 6% lower offer ($621k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $587k (11.1% 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 $20k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#852 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Navasota ISD (town): math 31% / reading 31% proficiency, ranked #600 of 826 in TX (top 73%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: John C Webb El (math 34% / reading 28%, grade F, #2,429 of 4,322 statewide, top 57%, 597 students, 80% FRL); Navasota J H (math 26% / reading 30%, grade F, #1,143 of 1,662 statewide, top 69%, 664 students, 82% FRL); Navasota H S (math 34% / reading 32%, grade F, #1,023 of 1,632 statewide, top 63%, 884 students, 73% FRL).
• Market conditions: 261 active listings in the ZIP; 110 units permitted in Grimes County in 2024 (0 in 5+ unit buildings).
• Grimes County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 6.4% vs local median 3.8% in Navasota — 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

• It's been on market 82 days. Have you received any prior offers? Is the seller open to a 11% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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 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?
• 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?