9201 Clarewood Dr #245

Houston, TX 77036

$66,000D

1 bd · 1.0 ba · 616 sqft · Built 1979 · Condo · Active · 118 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $835/mo
• Mortgage (P&I): −$346
• Tax + insurance: −$167
• HOA: −$300
• Vac / Maint / Mgmt: −$175
• Net cashflow: $-154/mo
• Annual: $-1,848/yr
• Cap rate: 3.49%
• Cash-on-cash: -10.00%
• DSCR: 0.55
• 1% rule: 1.26%
• Cash to close: $18,480

Investor read

• This is a 1-bed/1.0-bath condo listed at $66k.
• At list price, monthly cash flow is $-154 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $39k (41.2% below list).
• Meets the 1% rule at list price ($835 rent vs $66k).
• It's been on market 118 days — a 9% lower offer ($60k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $39k (41.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-0.7%/yr); year-one equity from $456 of loan paydown is wiped out by about $482 of value loss. Plan a longer hold.
• 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: crime F.
• Alief ISD (urban): math 23% / reading 28% proficiency, ranked #717 of 826 in TX (top 87%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 74% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Collins El (math 18% / reading 24%, grade F, #3,492 of 4,322 statewide, top 81%, 798 students, 92% FRL); Alief Middle (math 22% / reading 26%, grade F, #1,301 of 1,662 statewide, top 79%, 839 students, 87% FRL); Alief Isd J J A E P (13 students, 77% FRL).
• Watch-outs: property tax is 2.5% of price; HOA is 36% of rent.
• Market conditions: Rents falling (-6.6%/yr); 202 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 20d on market — plan ~3-4 weeks tenant-placement turnaround); 29,883 units permitted in Harris County in 2024 (8,621 in 5+ unit buildings).
• Harris County population projected at +47% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: moderate flood risk; severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→24/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 118 days. Have you received any prior offers? Is the seller open to a 41% concession, seller financing, or rate buy-down credit?
• Built in 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.