526 Reecewood Ln

Missouri City, TX 77489

$199,000C+

3 bd · 2.0 ba · 2,318 sqft · Built 1978 · SingleFamily · Pending · 271 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,224/mo
• Mortgage (P&I): −$1,044
• Tax + insurance: −$593
• HOA: −$9
• Vac / Maint / Mgmt: −$467
• Net cashflow: $111/mo
• Annual: $1,337/yr
• Cap rate: 6.97%
• Cash-on-cash: 2.40%
• DSCR: 1.11
• 1% rule: 1.12%
• Cash to close: $55,720

Investor read

• This is a 3-bed/2.0-bath single-family listed at $199k.
• At list price, monthly cash flow is $111 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $199k).
• It's been on market 271 days — a 12% lower offer ($175k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $175k (12.0% below list) — sets the bar for market timing.
• In year one you build about $279 of equity ($1k loan paydown + $-1k appreciation (-0.6% local appreciation)).
• Location reads 67/100 on livability (#526 in TX) — a middle-class / working-renter tenant base. Strengths: housing A+, crime A, employment A; Watch: amenities F, commute F, health & safety F.
• Fort Bend ISD (suburban): math 44% / reading 53% proficiency, ranked #140 of 826 in TX (top 17%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hunters Glen El (math 12% / reading 27%, grade F, #3,583 of 4,322 statewide, top 86%, 240 students, 87% FRL); Missouri City Middle (math 19% / reading 35%, grade F, #1,177 of 1,662 statewide, top 72%, 963 students, 88% FRL) — zoned schools average 87% FRL vs 35% district-wide (53 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 23% at this address vs 48% district-wide (-25 pts) — the specific schools serving this property underperform the Fort Bend ISD average; the district grade overstates school quality for this exact location.
• Watch-outs: property tax is 3.1% of price.
• Market conditions: Rents flat; 186 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); 43% of comp listings sitting > 30 days — soft ceiling on asking rent; 12,093 units permitted in Fort Bend County in 2024 (815 in 5+ unit buildings).
• Fort Bend County population projected at +75% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 5y ago; this cycle's ask has dropped $76k (28%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.0% vs local median 3.5% in Missouri City — 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 36% of the median local income ($75k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 271 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1978 — 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?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.