Gardenia Plan

Sonterra, TX 76537

$226,990F

3 bd · 2.5 ba · 1,381 sqft · Built — · SingleFamily · Active · 99 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,889/mo
• Mortgage (P&I): −$1,462
• Tax + insurance: −$464
• HOA: −$0
• Vac / Maint / Mgmt: −$397
• Net cashflow: $-434/mo
• Annual: $-5,204/yr
• Cap rate: 4.43%
• Cash-on-cash: -6.67%
• DSCR: 0.70
• 1% rule: 0.68%
• Cash to close: $78,036

Investor read

• This is a 3-bed/2.5-bath single-family listed at $227k. Condition is rated good.
• At list price, monthly cash flow is $-434 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $216k (4.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $189k (16.8% below list).
• It's been on market 99 days — a 9% lower offer ($207k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $189k (16.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Jarrell ISD (rural): math 19% / reading 28% proficiency, ranked #713 of 826 in TX (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Jarrell El (math 19% / reading 27%, grade F, #3,277 of 4,322 statewide, top 77%, 785 students, 62% FRL); Jarrell Middle (math 21% / reading 29%, grade F, #1,258 of 1,662 statewide, top 77%, 741 students, 64% FRL); Jarrell H S (math 22% / reading 37%, grade F, #1,112 of 1,632 statewide, top 70%, 868 students, 58% FRL).
• Market conditions: Rents soft (-1.7%/yr); 773 active listings in the ZIP; 34 comparable units currently listed for rent nearby; rentals at typical pace (median 20d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 7,543 units permitted in Williamson County in 2024 (1,425 in 5+ unit buildings).
• Williamson County population projected at +69% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

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 99 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• 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.
• 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.
• 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.