Livingston Plan

Seguin, TX 78155

$238,490F

3 bd · 2.0 ba · 1,424 sqft · Built — · SingleFamily · Active · 436 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,724/mo
• Mortgage (P&I): −$1,509
• Tax + insurance: −$479
• HOA: −$0
• Vac / Maint / Mgmt: −$362
• Net cashflow: $-626/mo
• Annual: $-7,512/yr
• Cap rate: 3.68%
• Cash-on-cash: -9.33%
• DSCR: 0.59
• 1% rule: 0.60%
• Cash to close: $80,547

Investor read

• This is a 3-bed/2.0-bath single-family listed at $238k. Condition is rated excellent.
• At list price, monthly cash flow is $-626 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $197k (17.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $172k (27.7% below list).
• It's been on market 436 days — a 12% lower offer ($210k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $172k (27.7% 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 66/100 on livability (#592 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D, amenities F, commute F.
• Navarro ISD (rural): math 48% / reading 50% proficiency, ranked #166 of 826 in TX (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Navarro El (math 37% / reading 57%, grade D-, #1,006 of 4,322 statewide, top 25%, 702 students, 45% FRL); Navarro Int (math 50% / reading 44%, grade D+, #424 of 1,662 statewide, top 27%, 485 students, 40% FRL); Navarro H S (math 47% / reading 57%, grade D+, #447 of 1,632 statewide, top 29%, 648 students, 33% FRL) — zoned schools at 39% FRL track the district average.
• Market conditions: Rents rising (+2.0%/yr); 2022 active listings in the ZIP; 23 comparable units currently listed for rent nearby; rentals lingering (median 55d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 74% of comp listings sitting > 30 days — soft ceiling on asking rent; 2,064 units permitted in Guadalupe County in 2024 (133 in 5+ unit buildings).
• Guadalupe County population projected at +61% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→20/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 436 days. Have you received any prior offers? Is the seller open to a 28% 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.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.