3255-3259 Sauce Pan Way · Houston, TX 77449

$759,000

16 bd · 0.0 ba · 3,610 sqft · MultiFamily

Built 2024 4,184 sqft lot $300/mo HOA · 12% of rent

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Why this score? — see what drove the B grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +28.0/30.0
• DSCR +10.0/10.0
• 1% rule +8.2/10.0
• ARV discount +7.5/15.0
• Schools +5.7/10.0
• Appreciation +4.4/10.0
• Livability +3.7/5.0
• Condition / age +2.5/5.0
• Rent growth +1.8/5.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 4 units. confirmed

Listing remarks

GPS 3107 Elrod Rd, 77450. 4-PLEX Featuring two units of 2 bed/2 bath & two units 1 bed/1 bath with garages & carports Why KATY Waterstone community? Unbeatable LOCATION!!! Brand new construction & Modern. Affordable price. Minimalist, spacious & openness vibe. Stylish finishes including Quartz counters, Subway & Hex tile in baths, Plank flooring. No carpet/ easy maintenance. Full Appliances package, blinds, remote garage, 10-Foot ceilings, island kitchens, ceiling fans. Gated community, green space, reservoir. Ideal for investors or live in one unit & rent out the others to pay down mortgage/ passive income. $trong rental demand in the area (do your own

Key facts

• 4,184 sq ft lot
• Garage
• Built 2024

🏗️ New construction. The $759,000 list price is a builder figure, so every metric below is computed on the value from comparable previous sales — $758,100.

What this means for you Summary

Snapshot

• This is a 4 × 4-bed/?-bath units multifamily listed at $759k.

Deal economics

• At list price, monthly cash flow is $2k ($28k/yr) — positive. Per door: $592/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $759k).
• Cap rate 10.0% vs local median 3.2% in Houston — 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.

Location & tenants

• 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: schools D, crime F.
• Katy ISD (suburban): math 61% / reading 63% proficiency, ranked #29 of 826 in TX (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents soft (-2.9%/yr); 744 active listings in the ZIP; solid renter incomes; 29,883 units permitted in Harris County in 2024 (8,621 in 5+ unit buildings).
• At $10,008/mo this rent would consume 137% of the median local household income ($88k/yr) (locally 3088% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-1.3%/yr); year-one equity from $5k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Harris County population projected at +47% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-1.3% appreciation + 0.0% rent growth), your $212k cash investment doubles in ~9 years — after that, you're playing with house money.

Negotiation context

• Only 0 days on market — expect competitive offers; lowballing is unlikely to land.

Recommended offer $759,000

Questions for the listing agent

1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
3. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
7. 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.
8. 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.
9. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.32% ✓
• Cap rate: 10.04%
• Cash-on-cash: 13.38%
• DSCR: 1.60
• GRM: 6.3

CMA / ARV

• ARV (on-the-fly): $758,100
• Comps found: 2

Show comp detail 2 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
3206 & 3210 Frying Pan Pl	0.06mi	15/— (-1)	3,610 (0%)	7mo	$759,000	$210	86
3214 & 3218 Frying Pan Pl	0.52mi	15/— (-1)	3,610 (0%)	8mo	$759,000	$210	64

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-1.27% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: 6.1%
• Equity multiple: 1.26×
• Total profit: $55,478
• Equity at exit: $173,190

10-year hold

• IRR: 10.2%
• Equity multiple: 1.86×
• Total profit: $182,831
• Equity at exit: $173,633

Cash invested: $212,268 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Texas: 87 Strongly Landlord-Friendly · R+5
• County: — inherits STATE
• City: — inherits STATE

3-day notice; statewide preemption; one of the fastest eviction climates; Travis County (Austin) slightly slower.

Methodology + full state rankings →

ZIP-level market 77449

• Home prices YoY: -0.5%
• Rents YoY: -2.9%
• Active inventory: 744
• Price-to-rent: 25.3×

Monthly cashflow live

• Estimated rent: $10,008 medium
• Mortgage (P&I): −$3,976
• Tax est. 1.5%: −$948 /mo · $11,372/yr
• Insurance: −$316
• HOA: −$300
• Vacancy / Maint / Mgmt: −$2,102
• Net cashflow: $2,367

Break-even live

Break-even rent $7,011

Max offer price $758,100

Occupancy floor 71%

4-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 4× units	4	—	$10,008
Total (4 units)			$10,008

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $189,525
• Closing costs: $22,743
• Reserves months: —
• Total cash needed: —

HOA detail

• Monthly dues: $300 · $3,600/yr
• Likely covers: watersecurity

Listing history 3 events

1. 2025-06-24
   status Pending
2. 2024-11-04
   historical
3. 2024-10-15
   listed $759,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Taxation est. · year 1

• Rental income: $120,096
• − Mortgage interest: −$42,465
• − Property taxes: −$11,372
• − Insurance: −$3,790
• − Repairs & maintenance: −$9,608
• − Management: −$9,608
• − HOA: −$3,600
• − Depreciation: −$22,054
• Taxable income: $17,599
• Est. tax owed @ 24.0%: −$4,224
• After-tax cash flow: $24,183/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Katy ISD
• NCES district ID: 4825170
• Math proficiency: 61% ▼ -7.00%
• Reading proficiency: 63% ▼ -3.00%
• Median HH income: $90,312
• Composite: 56.59/100
• National rank: #1146
• State rank: #29 of 826 in TX

Livability — Houston

• Score: 74/100
• State rank: #184
• US rank: #4771

Category grades

Amenities A+ Commute A Cost of living A+ Crime F Employment C Housing A+ Health & safety A- User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

• County: Harris County · 4,702,590 people
• City population: 3,226,434
• Metro: Houston-The Woodlands-Sugar Land, TX
• Population (ZIP): 130,028
• Household income: $87,808
• Rent vs Own: 31.7% rent · 68.3% own
• Severe rent burden: 3088.0

Population outlook (Harris County) Hauer SSP2

• Today (2025): 5,571,493 people
• By 2030: 6,089,821 · +9.3%
• By 2040: 7,142,806 · +28.2%
• By 2050: 8,185,864 · +46.9%
• By 2075: 10,574,329 · +89.8%
• By 2100: 12,109,958 · +117.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.68)
• Race & ethnicity: Hispanic / Latino 49% Two or more races 22% Black 20% White 19% Asian 6%
• Hispanic origin (detail): Mexican 26% Puerto Rican 1% Cuban 4%
• Common ancestry: Lithuanian 1% Italian 1%
• Foreign-born: 32% · Canada, Jamaica, Vietnam
• Languages at home: 48% English-only · Spanish 40% Other Indo-European 3% Vietnamese 1%

Political lean MEDSL · Harris

• 2024 margin: Lean D (+5.5) · D 52.0% · R 46.4% · Other 1.6%
• 2008→2024 swing: +3.9pp toward D · 2008: 1.6pp · 2024: 5.5pp
• All cycles: 2024: D+5.5 2020: D+13.3 2016: D+12.4 2012: D+0.1 2008: D+1.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -1.27%
• Current HPI: 254.6622
• Rent YoY: ▼ -2.86%
• Metro: Houston-The Woodlands-Sugar Land, TX
• State GDP YoY: ▲ 3.95%
• F500 in state: 110

Industry mix (Fortune 500 HQ in TX)

Industry	F500 HQs	Revenue
▸Energy	16	$1,198B
▸Technology	5	$198B
▸Engineering / Construction	4	$72B
▸Energy Services	3	$60B
▸Utilities	3	$41B
▸Healthcare	2	$330B

Price history

3 events — show timeline

• 2025-06-24 Pending — HARMLS
• 2024-11-04 Listing Removed — HARMLS
• 2024-10-15 Listed $759,000 HARMLS