The Royal (480) Plan

Liberty Hill, TX 78642

$414,990F

5 bd · 3.0 ba · 2,577 sqft · Built — · SingleFamily · Active · 190 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,882/mo
• Mortgage (P&I): −$2,364
• Tax + insurance: −$751
• HOA: −$0
• Vac / Maint / Mgmt: −$605
• Net cashflow: $-839/mo
• Annual: $-10,066/yr
• Cap rate: 4.06%
• Cash-on-cash: -7.98%
• DSCR: 0.65
• 1% rule: 0.64%
• Cash to close: $126,223

Investor read

• This is a 5-bed/3.0-bath single-family listed at $415k. Condition is rated good.
• At list price, monthly cash flow is $-839 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $329k (20.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $288k (30.6% below list).
• It's been on market 190 days — a 12% lower offer ($365k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $288k (30.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#495 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: employment D+, amenities F, commute F.
• Liberty Hill ISD (rural): math 43% / reading 52% proficiency, ranked #160 of 826 in TX (top 19%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Bill Burden El (math 36% / reading 45%, grade F, #1,490 of 4,322 statewide, top 35%, 808 students, 19% FRL); Liberty Hill Middle (math 44% / reading 50%, grade D+, #424 of 1,662 statewide, top 27%, 944 students, 26% FRL); Liberty Hill H S (math 39% / reading 69%, grade C-, #422 of 1,632 statewide, top 26%, 2,001 students, 23% FRL) — zoned schools at 23% FRL track the district average.
• Market conditions: Rents soft (-1.9%/yr); 1739 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 7,543 units permitted in Williamson County in 2024 (1,425 in 5+ unit buildings).
• Williamson County population projected at +69% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major wind risk, 76% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.1% vs local median 3.0% in Liberty Hill — 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.

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 190 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• 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.
• 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.