7525 Canal St · Houston, TX 77012

$275,000

3 bd · 1.0 ba · 2,209 sqft · SingleFamily public records · 45 Days on market

Built 1935 9,375 sqft lot $124/sqft · 26% below area Est $373k · 26% under

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Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• ARV discount +15.0/15.0
• Cash flow +7.4/30.0
• Appreciation +4.0/10.0
• Livability +3.7/5.0
• 1% rule +3.0/10.0
• Schools +2.7/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• DSCR +1.5/10.0

Listing remarks

This three unit is conveniently located just 15-20 minutes from the Texas Medical Center, University of Houston, and Downtown Houston, this property offers convenience. Whether you are seeking a rental investment or a versatile living space this is a fantastic opportunity you won't want to miss!

Key facts

• 9,375 sq ft lot
• Built 1935
• Listed 44 days

Property features AI

Finance

• Other: 3 total units (multi-unit property)

Exterior

• Utilities: Electricity available; Natural gas available; Water available
• Home design: Residential income property; Total building area approximately 2,209
• Construction: Built in 1935; Composition roof
• Exterior features: Lot about 9,375 square feet

Interior

• Kitchen: Microwave
• Bedrooms: One 2-bedroom unit; Two 1-bedroom units; One 1-bedroom unit
• Bathrooms: 2 full bathrooms (total)
• Heating & cooling: Window unit cooling
• Interior features: Microwave

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $275k.

Deal economics

• At list price, monthly cash flow is $-356 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $212k (22.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $219k (20.3% below list).
• Recommended offer: $212k (22.8% below list) — sets the bar for cash-flow.
• Cap rate 4.7% 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.

Location & tenants

• 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.
• Houston ISD (urban): math 27% / reading 35% proficiency, ranked #593 of 826 in TX (top 72%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 71% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: De Zavala El (math 20% / reading 27%, grade F, #3,247 of 4,322 statewide, top 76%, 389 students, 95% FRL); Edison Middle (math 12% / reading 16%, grade F, #1,596 of 1,662 statewide, top 96%, 460 students, 96% FRL); Milby H S (math 28% / reading 38%, grade F, #1,023 of 1,632 statewide, top 63%, 2,107 students, 93% FRL) — zoned schools average 95% FRL vs 71% district-wide (24 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 74 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; 29,883 units permitted in Harris County in 2024 (8,621 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-2.1%/yr); year-one equity from $2k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Harris County population projected at +47% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 45 days — a 3% lower offer ($267k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Risks & watch-outs

• Watch-outs: built in 1935 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: moderate flood risk; severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $212,167 (22.8% below list)

Questions for the listing agent

1. 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?
2. It's been on market 45 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
3. Built in 1935 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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?
7. 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?
8. 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.
9. 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.
10. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 0.80% ✗
• Cap rate: 4.74%
• Cash-on-cash: -5.54%
• DSCR: 0.75
• GRM: 10.5

CMA / ARV

• ARV (median comp): $372,523
• List price: $275,000
• Delta: -26.18%
• Verdict: UNDERPRICED
• Comps: 10 within 1.0 mi

Show comp detail 2 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
7725 Avenue H	0.26mi	4/3.0 (+1)	2,000 (-10%)	9mo	$295,000	$148	52
7045 Avenue O	0.71mi	4/3.5 (+1)	2,420 (+10%)	8mo	$270,000	$112	29

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-2.08% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -19.1%
• Equity multiple: 0.27×
• Total profit: $-56,372
• Equity at exit: $52,383

10-year hold

• IRR: -12.3%
• Equity multiple: 0.11×
• Total profit: $-68,160
• Equity at exit: $43,791

Cash invested: $77,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Texas: 87 Strongly Landlord-Friendly · R+5
• County: — inherits STATE
• City: — inherits STATE

3-day notice; statewide preemption; one of the fastest eviction climates; Travis County (Austin) slightly slower.

Methodology + full state rankings →

ZIP-level market 77012

• Home prices YoY: -0.8%
• Active inventory: 74
• Price-to-rent: 10.5×

Monthly cashflow live

• Estimated rent: $2,191 medium
• Mortgage (P&I): −$1,442
• Tax from tax record: −$530 /mo · $6,355/yr
• Insurance: −$115
• HOA: −$0
• Vacancy / Maint / Mgmt: −$460
• Net cashflow: $-356

Break-even live

Break-even rent $2,641

Max offer price $212,167

Occupancy floor —

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $68,750
• Closing costs: $8,250
• Reserves months: —
• Total cash needed: —

Rent comps 4 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
7334 Texas St Houston, TX	3.0	2.0	1782	$2,200	$1.23	43d	1	0.43mi
6403 Avenue C Unit 1019625P Houston, TX	2.0–8.0	1.0–4.0	1232	$3,466	$2.81	2d	2	1.40mi
1010 S Wayside Dr #101 Houston, TX	4.0	2.0	1400	$1,199	$0.86	24d	1	1.45mi
1010 S Wayside Dr #101 Houston, TX	4.0	2.0	1400	$1,982	$1.42	43d	1	1.45mi

Listing history 16 events

1. 2026-06-18
   days on market $275,000 Active 45 DOM
2. 2026-06-17
   days on market $275,000 Active 44 DOM
3. 2026-06-16
   days on market $275,000 Active 43 DOM
4. 2026-06-15
   days on market $275,000 Active 42 DOM
5. 2026-06-13
   days on market $275,000 Active 40 DOM
6. 2026-06-10
   days on market $275,000 Active 36 DOM
7. 2026-06-08
   days on market $275,000 Active 35 DOM
8. 2026-06-07
   days on market $275,000 Active 34 DOM
9. 2026-06-04
   days on market $275,000 Active 31 DOM
10. 2026-06-01
    days on market $275,000 Active 28 DOM
11. 2026-05-31
    days on market $275,000 Active 27 DOM
12. 2026-05-04
    listed $275,000 Active 297-char remark
13. 2026-04-14
    historical
14. 2025-08-14
    listed $275,000 Active
15. 2012-09-21
    soldstatus
16. 1988-10-27
    soldstatus

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast TX · Resets to sale price

• Current annual tax: $6,355 · $530/mo
• Projected year-2 tax: $6,355 · $530/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 5/10 Major FEMA zone X (unshaded) · 24% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 9/10 Extreme 7 d/yr ≥110°F today · 24 d/yr by 30 yrs out
• 💨 Wind 9/10 Extreme 99% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $26,287
• − Mortgage interest: −$15,404
• − Property taxes: −$6,355
• − Insurance: −$1,375
• − Repairs & maintenance: −$2,103
• − Management: −$2,103
• − Depreciation: −$8,000
• Taxable loss: −$9,053
• Est. tax savings @ 24.0%: +$2,173
• After-tax cash flow: $-2,096/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Houston ISD
• NCES district ID: 4823640
• Math proficiency: 27% ▼ -18.00%
• Reading proficiency: 35% ▼ -6.00%
• Median HH income: $46,054
• Composite: 26.63/100
• National rank: #7173
• State rank: #593 of 826 in TX

Livability — Houston

• Score: 74/100
• State rank: #184
• US rank: #4771

Category grades

Amenities A+ Commute A Cost of living A+ Crime F Employment C Housing A+ Health & safety A- User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Houston, TX
• City population: 3,226,434
• Population (ZIP): 16,780

Population outlook (Harris County) Hauer SSP2

• Today (2025): 5,571,493 people
• By 2030: 6,089,821 · +9.3%
• By 2040: 7,142,806 · +28.2%
• By 2050: 8,185,864 · +46.9%
• By 2075: 10,574,329 · +89.8%
• By 2100: 12,109,958 · +117.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Hispanic (92%)
• Race & ethnicity: Hispanic / Latino 92% Two or more races 35% Black 5% White 2%
• Hispanic origin (detail): Mexican 80%
• Common ancestry: Lithuanian 2%
• Foreign-born: 37% · Canada, Jamaica
• Languages at home: 18% English-only · Spanish 82%

Political lean MEDSL · Harris

• 2024 margin: Lean D (+5.5) · D 52.0% · R 46.4% · Other 1.6%
• 2008→2024 swing: +3.9pp toward D · 2008: 1.6pp · 2024: 5.5pp
• All cycles: 2024: D+5.5 2020: D+13.3 2016: D+12.4 2012: D+0.1 2008: D+1.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -2.08%
• Current HPI: 274.5729
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 3.95%
• F500 in state: 110

Industry mix (Fortune 500 HQ in TX)

Industry	F500 HQs	Revenue
▸Energy	16	$1,198B
▸Technology	5	$198B
▸Engineering / Construction	4	$72B
▸Energy Services	3	$60B
▸Utilities	3	$41B
▸Healthcare	2	$330B

Price history

+0.0% since first listed

5 events — show timeline

• 2026-05-04 Listed $275,000 HARMLS
• 2026-04-14 Listing Removed — HARMLS
• 2025-08-14 Listed $275,000 HARMLS
• 2012-09-21 Sold (Public Records) — Public Records
• 1988-10-27 Sold (Public Records) — Public Records

Property tax history

+7.7%/yr

Latest (2025): $6,355 · +3.0% YoY. Source: county tax records.