5108 Redbud Valley Dr

Pearland, TX 77584

$297,490F

3 bd · 2.0 ba · 1,688 sqft · Built 2026 · SingleFamily · Pending · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,126/mo
• Mortgage (P&I): −$1,812
• Tax + insurance: −$576
• HOA: −$50
• Vac / Maint / Mgmt: −$447
• Net cashflow: $-758/mo
• Annual: $-9,093/yr
• Cap rate: 3.66%
• Cash-on-cash: -9.40%
• DSCR: 0.58
• 1% rule: 0.62%
• Cash to close: $96,736

Investor read

• This is a 3-bed/2.0-bath single-family listed at $297k.
• At list price, monthly cash flow is $-758 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $236k (20.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $213k (28.5% below list).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $213k (28.5% below list) — sets the bar for 1% rule.
• 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 81/100 on livability (#32 in TX, #1,539 nationally) — a professional / high-income tenant draw. Strengths: employment A+, housing A+, crime A; Watch: amenities D-, commute F.
• Alvin ISD (suburban): math 39% / reading 48% proficiency, ranked #255 of 826 in TX (top 31%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: G W Harby J H (math 28% / reading 38%, grade F, #930 of 1,662 statewide, top 57%, 610 students, 72% FRL); Manvel H S (math 48% / reading 48%, grade D, #571 of 1,632 statewide, top 36%, 2,607 students, 57% FRL) — zoned schools average 64% FRL vs 48% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+1.5%/yr); 500 active listings in the ZIP; high-income renter base; 3,960 units permitted in Brazoria County in 2024 (593 in 5+ unit buildings).
• Brazoria County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 3.7% vs local median 3.0% in Pearland — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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.