11711 Memorial Dr #203

Houston, TX 77024

$175,000D

1 bd · 1.5 ba · 1,120 sqft · Built 1977 · Condo · Active · 143 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,444/mo
• Mortgage (P&I): −$918
• Tax + insurance: −$410
• HOA: −$469
• Vac / Maint / Mgmt: −$303
• Net cashflow: $-657/mo
• Annual: $-7,878/yr
• Cap rate: 1.79%
• Cash-on-cash: -16.08%
• DSCR: 0.28
• 1% rule: 0.82%
• Cash to close: $49,000

Investor read

• This is a 1-bed/1.5-bath condo listed at $175k.
• At list price, monthly cash flow is $-657 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $81k (53.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $144k (17.5% below list).
• It's been on market 143 days — a 12% lower offer ($154k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $81k (53.7% below list) — sets the bar for cash-flow.
• In year one you build about $13k of equity ($1k loan paydown + $12k appreciation (6.9% local appreciation)).
• Location reads 74/100 on livability (#184 in TX, #4,771 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, cost of living A+, housing A+; Watch: crime F.
• Spring Branch ISD (urban): math 47% / reading 46% proficiency, ranked #215 of 826 in TX (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Frostwood El (math 84% / reading 73%, grade A, #48 of 4,322 statewide, top 1%, 798 students, 12% FRL); Memorial Middle (math 81% / reading 70%, grade A, #33 of 1,662 statewide, top 2%, 1,281 students, 12% FRL); Memorial H S (math 73% / reading 85%, grade A-, #50 of 1,632 statewide, top 3%, 2,555 students, 16% FRL) — zoned schools average 13% FRL vs 54% district-wide (41 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 78% at this address vs 46% district-wide (+31 pts) — the actual schools serving this property are materially stronger than the Spring Branch ISD average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: HOA is 32% of rent.
• Market conditions: Rents rising fast (+5.0%/yr); 313 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals leasing fast (median 13d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 29,883 units permitted in Harris County in 2024 (8,621 in 5+ unit buildings).
• Harris County population projected at +47% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 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.
• By year 3, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 6→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 1.8% vs local median 3.2% in Houston — 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?
• It's been on market 143 days. Have you received any prior offers? Is the seller open to a 54% concession, seller financing, or rate buy-down credit?
• Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.
• 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?