8822 Morning Glow Dr

Sienna, TX 77459

$459,000D-

4 bd · 3.0 ba · 2,874 sqft · Built 2021 · SingleFamily · Active · 110 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,541/mo
• Mortgage (P&I): −$2,407
• Tax + insurance: −$1,309
• HOA: −$104
• Vac / Maint / Mgmt: −$744
• Net cashflow: $-1,022/mo
• Annual: $-12,269/yr
• Cap rate: 3.62%
• Cash-on-cash: -9.55%
• DSCR: 0.58
• 1% rule: 0.77%
• Cash to close: $128,520

Investor read

• This is a 4-bed/3.0-bath single-family listed at $459k. Condition is rated good.
• At list price, monthly cash flow is $-1k ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $278k (39.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $354k (22.8% below list).
• It's been on market 110 days — a 9% lower offer ($418k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $278k (39.3% below list) — sets the bar for cash-flow.
• Local home prices are declining (-1.7%/yr); year-one equity from $3k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• 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: Ronald Thornton Middle (math 40% / reading 52%, grade D+, #462 of 1,662 statewide, top 28%, 1,529 students, 41% FRL).
• Watch-outs: property tax is 2.9% of price.
• Market conditions: Rents soft (-0.1%/yr); 1773 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals lingering (median 82d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 80% 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.
• 9 sale attempts since 2y 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: 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 3.6% vs local median 2.8% in Sienna — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• This rent runs 33% of the median local income ($129k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 110 days. Have you received any prior offers? Is the seller open to a 39% 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.
• 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.