216 Lantana Ln

Huntsville, TX 77340

$211,990D

4 bd · 2.0 ba · 1,716 sqft · Built 2026 · SingleFamily · Active · 43 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,810/mo
• Mortgage (P&I): −$1,112
• Tax + insurance: −$353
• HOA: −$33
• Vac / Maint / Mgmt: −$380
• Net cashflow: $-68/mo
• Annual: $-817/yr
• Cap rate: 5.91%
• Cash-on-cash: -1.38%
• DSCR: 0.94
• 1% rule: 0.85%
• Cash to close: $59,357

Investor read

• This is a 4-bed/2.0-bath single-family listed at $212k. Condition is rated good.
• At list price, monthly cash flow is $-68 ($-817/yr) — negative.
• To cash-flow at today's rent, offer at most $202k (4.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $181k (14.6% below list).
• It's been on market 43 days — a 3% lower offer ($206k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $181k (14.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#825 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+; Watch: amenities C-, crime D-, commute F.
• Huntsville ISD (town): math 25% / reading 37% proficiency, ranked #621 of 826 in TX (top 75%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Texas Online Preparatory El (math 25% / reading 41%, grade F, #2,208 of 4,322 statewide, top 52%, 1,334 students, 63% FRL); Texas Online Preparatory Middle (math 31% / reading 58%, grade D, #491 of 1,662 statewide, top 31%, 1,941 students, 58% FRL); Texas Online Preparatory H S (math 23% / reading 75%, grade D, #553 of 1,632 statewide, top 34%, 2,100 students, 46% FRL).
• Market conditions: Rents rising (+1.3%/yr); 732 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 93d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 527 units permitted in Walker County in 2024 (0 in 5+ unit buildings).
• Walker County population projected at +29% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 5.9% vs local median 3.0% in Huntsville — 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 45% of the median local income ($49k/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 43 days. Have you received any prior offers? Is the seller open to a 15% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• Crime grade is D 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?
• 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.