8802 Mallow Rose Way

Rosharon, TX 77583

$330,000D-

4 bd · 2.5 ba · 2,862 sqft · Built 2022 · SingleFamily · Active · 127 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,857/mo
• Mortgage (P&I): −$1,731
• Tax + insurance: −$1,063
• HOA: −$44
• Vac / Maint / Mgmt: −$600
• Net cashflow: $-580/mo
• Annual: $-6,965/yr
• Cap rate: 4.18%
• Cash-on-cash: -7.54%
• DSCR: 0.66
• 1% rule: 0.87%
• Cash to close: $92,400

Investor read

• This is a 4-bed/2.5-bath single-family listed at $330k. Condition is rated good.
• At list price, monthly cash flow is $-580 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $227k (31.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $286k (13.4% below list).
• It's been on market 127 days — a 12% lower offer ($290k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $227k (31.1% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#701 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing 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: Heritage Rose El (math 29% / reading 28%, grade F, #2,706 of 4,322 statewide, top 63%, 1,209 students, 83% FRL); Ronald Thornton Middle (math 40% / reading 52%, grade D+, #462 of 1,662 statewide, top 28%, 1,529 students, 41% FRL) — zoned schools average 62% FRL vs 35% district-wide (27 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 3.4% of price.
• Market conditions: Rents flat; 1445 active listings in the ZIP; 8 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; high-income renter base; 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.
• 11 sale attempts since 4y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: major flood risk; 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.

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 127 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• 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 F-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?