14010 Longstreet Rd #4

Willis, TX 77318

$749,000D-

3 bd · 3.0 ba · 4,098 sqft · Built 2025 · MultiFamily · Active · 108 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,800/mo
• Mortgage (P&I): −$4,143
• Tax + insurance: −$1,317
• HOA: −$285
• Vac / Maint / Mgmt: −$1,428
• Net cashflow: $-373/mo
• Annual: $-4,470/yr
• Cap rate: 5.73%
• Cash-on-cash: -2.02%
• DSCR: 0.91
• 1% rule: 0.86%
• Cash to close: $221,200

Investor read

• This is a 3-bed/3.0-bath multifamily listed at $749k. Condition is rated excellent.
• At list price, monthly cash flow is $-373 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $736k (1.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $680k (9.2% below list).
• It's been on market 108 days — a 9% lower offer ($682k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $680k (9.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $24k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#933 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime C-, employment D+, amenities F.
• Willis ISD (rural): math 33% / reading 40% proficiency, ranked #458 of 826 in TX (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: C C Hardy El (math 32% / reading 29%, grade F, #2,464 of 4,322 statewide, top 58%, 752 students, 83% FRL); Robert P Brabham Middle (math 33% / reading 41%, grade F, #756 of 1,662 statewide, top 47%, 1,117 students, 52% FRL); Willis H S (math 19% / reading 46%, grade F, #1,029 of 1,632 statewide, top 64%, 2,521 students, 57% FRL).
• Market conditions: 1569 active listings in the ZIP; 20 comparable units currently listed for rent nearby; rentals lingering (median 49d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 13,259 units permitted in Montgomery County in 2024 (1,402 in 5+ unit buildings).
• Montgomery County population projected at +65% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 2y ago; this cycle's ask has dropped $41k (5%) 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→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.7% vs local median 4.1% in Willis — 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.
• At $6,800/mo this rent would consume 88% of the median local household income ($92k/yr) — very limited rent-growth headroom before tenants either downsize or default.

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 108 days. Have you received any prior offers? Is the seller open to a 9% 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?
• 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 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?
• 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.