9009 Gaylord St

Hedwig Village, TX 77024

$125,000D

1 bd · 1.0 ba · 672 sqft · Built 1978 · Condo · Pending · 77 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,383/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$263
• HOA: −$391
• Vac / Maint / Mgmt: −$290
• Net cashflow: $-217/mo
• Annual: $-2,607/yr
• Cap rate: 4.21%
• Cash-on-cash: -7.45%
• DSCR: 0.67
• 1% rule: 1.11%
• Cash to close: $35,000

Investor read

• This is a 1-bed/1.0-bath condo listed at $125k.
• At list price, monthly cash flow is $-217 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $87k (30.7% below list).
• Meets the 1% rule at list price ($1k rent vs $125k).
• It's been on market 77 days — a 6% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $87k (30.7% below list) — sets the bar for cash-flow.
• In year one you build about $10k of equity ($864 loan paydown + $9k appreciation (6.9% local appreciation)).
• Location reads 69/100 on livability (#428 in TX) — a middle-class / working-renter tenant base. Strengths: employment A+, health & safety A-; Watch: crime D+, commute F, cost of living F.
• Spring Branch ISD (urban): math 47% / reading 46% proficiency, ranked #215 of 826 in TX (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Memorial Drive El (math 72% / reading 75%, grade A, #95 of 4,322 statewide, top 2%, 394 students, 8% FRL); Spring Branch Middle (math 55% / reading 49%, grade C+, #301 of 1,662 statewide, top 19%, 1,074 students, 39% FRL); Memorial H S (math 73% / reading 85%, grade A-, #50 of 1,632 statewide, top 3%, 2,555 students, 16% FRL) — zoned schools average 21% FRL vs 54% district-wide (33 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 68% at this address vs 46% district-wide (+22 pts) — the actual schools serving this property are materially stronger than the Spring Branch ISD average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: HOA is 28% of rent.
• Market conditions: Rents rising fast (+5.0%/yr); 313 active listings in the ZIP; 30 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 29,883 units permitted in Harris County in 2024 (8,621 in 5+ unit buildings).
• Harris County population projected at +47% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 4, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major 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.
• This rent is only 12% of the median local income ($136k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 77 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 A-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?