2108 Stillhouse Dr

Magnolia, TX 77316

$361,990F

4 bd · 3.0 ba · 2,393 sqft · Built 2026 · Land · Pending · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,328/mo
• Mortgage (P&I): −$2,292
• Tax + insurance: −$728
• HOA: −$115
• Vac / Maint / Mgmt: −$489
• Net cashflow: $-1,296/mo
• Annual: $-15,548/yr
• Cap rate: 2.73%
• Cash-on-cash: -12.71%
• DSCR: 0.43
• 1% rule: 0.53%
• Cash to close: $122,357

Investor read

• This is a 4-bed/3.0-bath land listed at $362k.
• At list price, monthly cash flow is $-1k ($-16k/yr) — negative.
• To cash-flow at today's rent, offer at most $292k (19.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $233k (35.7% below list).
• It's been on market 17 days — a 2% lower offer ($357k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $233k (35.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#222 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Magnolia ISD (rural): math 42% / reading 45% proficiency, ranked #247 of 826 in TX (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Willie E Williams El (math 46% / reading 41%, grade F, #1,269 of 4,322 statewide, top 30%, 869 students, 70% FRL); Magnolia J H (math 35% / reading 37%, grade F, #805 of 1,662 statewide, top 50%, 1,103 students, 57% FRL); Magnolia H S (math 47% / reading 62%, grade C-, #379 of 1,632 statewide, top 26%, 2,248 students, 31% FRL).
• Market conditions: Rents flat; 2300 active listings in the ZIP; high-income renter base; 13,259 units permitted in Montgomery County in 2024 (1,402 in 5+ unit buildings).
• Montgomery County population projected at +65% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 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.
• Cap rate 2.7% vs local median 3.4% in Magnolia — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.