5539 Gatewood Trl

Seguin, TX 78155

$222,949D

4 bd · 2.5 ba · 1,867 sqft · Built 2026 · SingleFamily · Active · 76 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,861/mo
• Mortgage (P&I): −$1,169
• Tax + insurance: −$798
• HOA: −$75
• Vac / Maint / Mgmt: −$391
• Net cashflow: $-572/mo
• Annual: $-6,861/yr
• Cap rate: 5.51%
• Cash-on-cash: -2.79%
• DSCR: 0.88
• 1% rule: 0.83%
• Cash to close: $62,426

Investor read

• This is a 4-bed/2.5-bath single-family listed at $223k. Condition is rated excellent.
• At list price, monthly cash flow is $-572 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $140k (37.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $186k (16.5% below list).
• It's been on market 76 days — a 6% lower offer ($210k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $140k (37.1% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k 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.
• Seguin ISD (town): math 26% / reading 30% proficiency, ranked #663 of 826 in TX (top 80%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Koennecke El (math 33% / reading 36%, grade F, #1,995 of 4,322 statewide, top 50%, 550 students, 73% FRL); Jim Barnes Middle (math 24% / reading 25%, grade F, #1,279 of 1,662 statewide, top 78%, 797 students, 75% FRL); Seguin H S (math 24% / reading 43%, grade F, #1,011 of 1,632 statewide, top 63%, 2,101 students, 71% FRL).
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: Rents rising (+2.0%/yr); 1833 active listings in the ZIP; 13 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 69% 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: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.5% vs local median 3.6% in Seguin — 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 31% of the median local income ($71k/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 76 days. Have you received any prior offers? Is the seller open to a 37% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?