The Jennings G Plan

Castroville, TX 78009

$507,000F

5 bd · 3.0 ba · 3,420 sqft · Built — · SingleFamily · Active · 559 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,504/mo
• Mortgage (P&I): −$3,819
• Tax + insurance: −$1,214
• HOA: −$13
• Vac / Maint / Mgmt: −$1,156
• Net cashflow: $-698/mo
• Annual: $-8,370/yr
• Cap rate: 5.14%
• Cash-on-cash: -4.11%
• DSCR: 0.82
• 1% rule: 0.76%
• Cash to close: $203,893

Investor read

• This is a 5-bed/3.0-bath single-family listed at $507k. Condition is rated fair.
• At list price, monthly cash flow is $-698 ($-8k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $507k).
• It's been on market 559 days — a 12% lower offer ($446k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $446k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#212 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: health & safety D+, amenities F, commute F.
• Medina Valley ISD (rural): math 48% / reading 53% proficiency, ranked #148 of 826 in TX (top 18%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Potranco El (math 50% / reading 51%, grade D+, #833 of 4,322 statewide, top 20%, 847 students, 47% FRL); Medina Valley Middle (math 47% / reading 49%, grade C-, #400 of 1,662 statewide, top 24%, 1,029 students, 62% FRL); Medina Valley H S (math 34% / reading 55%, grade F, #652 of 1,632 statewide, top 43%, 2,147 students, 51% FRL) — zoned schools at 53% FRL track the district average.
• Market conditions: 623 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals lingering (median 100d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 62% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 102 units permitted in Medina County in 2024 (0 in 5+ unit buildings).
• Medina County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major wind risk, 70% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.1% vs local median 2.6% in Castroville — 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.
• At $5,504/mo this rent would consume 64% of the median local household income ($103k/yr) — very limited rent-growth headroom before tenants either downsize or default.

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 559 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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?
• 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.