204 Kellys Heroes Way

Sonterra, TX 76537

$225,000D-

3 bd · 2.0 ba · 1,214 sqft · Built 2022 · SingleFamily · Active · 134 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,821/mo
• Mortgage (P&I): −$1,180
• Tax + insurance: −$632
• HOA: −$26
• Vac / Maint / Mgmt: −$382
• Net cashflow: $-400/mo
• Annual: $-4,799/yr
• Cap rate: 4.16%
• Cash-on-cash: -7.62%
• DSCR: 0.66
• 1% rule: 0.81%
• Cash to close: $63,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $225k. Condition is rated good.
• At list price, monthly cash flow is $-400 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $154k (31.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $182k (19.1% below list).
• It's been on market 134 days — a 12% lower offer ($198k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $154k (31.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads: area grade D — 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).
• Watch-outs: property tax is 2.9% of price.
• Market conditions: Rents soft (-1.7%/yr); 915 active listings in the ZIP; 36 comparable units currently listed for rent nearby; rentals lingering (median 42d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 69% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 3 sale attempts since 4y ago 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.
• Climate carrying-cost: severe wind risk, 80% 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.

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 134 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.