Ramsey Plan

Fredericksburg, TX 78624

$293,999D

4 bd · 2.0 ba · 1,667 sqft · Built — · SingleFamily · Active · 638 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,549/mo
• Mortgage (P&I): −$1,551
• Tax + insurance: −$493
• HOA: −$0
• Vac / Maint / Mgmt: −$535
• Net cashflow: $-31/mo
• Annual: $-367/yr
• Cap rate: 6.17%
• Cash-on-cash: -0.44%
• DSCR: 0.98
• 1% rule: 0.86%
• Cash to close: $82,827

Investor read

• This is a 4-bed/2.0-bath single-family listed at $294k. Condition is rated excellent.
• At list price, monthly cash flow is $-31 ($-367/yr) — negative.
• To cash-flow at today's rent, offer at most $291k (0.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $255k (13.3% below list).
• It's been on market 638 days — a 12% lower offer ($259k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $255k (13.3% 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 $9k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#182 in TX, #4,711 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, health & safety B+, cost of living B; Watch: employment C-, amenities D, commute F.
• Fredericksburg ISD (town): math 44% / reading 48% proficiency, ranked #241 of 826 in TX (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 977 active listings in the ZIP; 11 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 52 units permitted in Gillespie County in 2024 (0 in 5+ unit buildings).
• Gillespie County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 2y ago; this cycle's ask is 9% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Cap rate 6.2% vs local median 1.7% in Fredericksburg — 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.
• This rent runs 41% of the median local income ($75k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 638 days. Have you received any prior offers? Is the seller open to a 13% 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.