Cohen Plan

Castroville, TX 78009

$510,990D-

5 bd · 4.5 ba · 3,033 sqft · Built — · SingleFamily · Active · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,984/mo
• Mortgage (P&I): −$3,918
• Tax + insurance: −$1,245
• HOA: −$0
• Vac / Maint / Mgmt: −$1,257
• Net cashflow: $-436/mo
• Annual: $-5,236/yr
• Cap rate: 5.59%
• Cash-on-cash: -2.50%
• DSCR: 0.89
• 1% rule: 0.80%
• Cash to close: $209,204

Investor read

• This is a 5-bed/4.5-bath single-family listed at $511k. Condition is rated poor.
• At list price, monthly cash flow is $-436 ($-5k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $511k).
• It's been on market 37 days — a 3% lower offer ($496k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $496k (3.0% 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.
• Market conditions: 440 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; 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 6→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.6% vs local median 2.9% 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.

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 37 days. Have you received any prior offers? Is the seller open to a 3% 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof repair — Significant damage and potential leaks.
• Major: exterior siding repair — Severe wear and peeling paint.
• Major: flooring replacement — Severe wear and tear.
• Major: paint repair and repainting — Severe wear and peeling paint.
• Major: HVAC system replacement — Visible damage to condensers, indicating potential cooling issues.
• Major: landscaping and curb appeal improvements — Sparse vegetation and minimal landscaping features.