1500 Quartz St

Penitas, TX 78576

$199,900D-

3 bd · 2.0 ba · 2,420 sqft · Built 1998 · SingleFamily · Pending · 36 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,309/mo
• Mortgage (P&I): −$1,048
• Tax + insurance: −$595
• HOA: −$0
• Vac / Maint / Mgmt: −$275
• Net cashflow: $-609/mo
• Annual: $-7,307/yr
• Cap rate: 2.64%
• Cash-on-cash: -13.05%
• DSCR: 0.42
• 1% rule: 0.65%
• Cash to close: $55,972

Investor read

• This is a 3-bed/2.0-bath single-family listed at $200k.
• At list price, monthly cash flow is $-609 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $123k (38.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $131k (34.5% below list).
• It's been on market 36 days — a 3% lower offer ($194k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $123k (38.6% below list) — sets the bar for cash-flow.
• In year one you build about $14k of equity ($1k loan paydown + $13k appreciation (6.3% local appreciation)).
• Location reads 64/100 on livability (#820 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: employment D, amenities F, commute F.
• La Joya ISD (suburban): math 18% / reading 29% proficiency, ranked #759 of 826 in TX (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Corina Pena El (math 12% / reading 22%, grade F, #3,836 of 4,322 statewide, top 91%, 546 students, 98% FRL); Dr Javier Saenz Middle (math 10% / reading 19%, grade F, #1,583 of 1,662 statewide, top 96%, 655 students, 99% FRL); La Joya H S (math 16% / reading 32%, grade F, #1,333 of 1,632 statewide, top 82%, 2,775 students, 92% FRL) — zoned schools average 96% FRL vs 54% district-wide (43 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 3.1% of price.
• Market conditions: 52 active listings in the ZIP; 7,378 units permitted in Hidalgo County in 2024 (641 in 5+ unit buildings).
• Hidalgo County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 3, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 94% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→22/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 36 days. Have you received any prior offers? Is the seller open to a 39% 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?
• 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.