Kiel II Plan

Forney, TX 75126

$355,900F

5 bd · 4.0 ba · 2,624 sqft · Built — · SingleFamily · Active · 632 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,864/mo
• Mortgage (P&I): −$2,168
• Tax + insurance: −$689
• HOA: −$0
• Vac / Maint / Mgmt: −$601
• Net cashflow: $-595/mo
• Annual: $-7,136/yr
• Cap rate: 4.57%
• Cash-on-cash: -6.16%
• DSCR: 0.73
• 1% rule: 0.69%
• Cash to close: $115,764

Investor read

• This is a 5-bed/4.0-bath single-family listed at $356k. Condition is rated excellent.
• At list price, monthly cash flow is $-595 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $327k (8.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $286k (19.5% below list).
• It's been on market 632 days — a 12% lower offer ($313k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $286k (19.5% 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 $12k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#98 in TX, #3,339 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, cost of living A+; Watch: amenities C-, commute F.
• Forney ISD (rural): math 41% / reading 44% proficiency, ranked #234 of 826 in TX (top 28%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Henderson El (math 52% / reading 54%, grade C, #705 of 4,322 statewide, top 17%, 737 students, 50% FRL); Warren Middle (math 43% / reading 50%, grade D+, #443 of 1,662 statewide, top 28%, 903 students, 26% FRL); Forney H S (math 64% / reading 58%, grade C+, #258 of 1,632 statewide, top 16%, 2,272 students, 28% FRL).
• Market conditions: Rents rising (+1.4%/yr); 2639 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 72% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,747 units permitted in Kaufman County in 2024 (180 in 5+ unit buildings).
• Kaufman County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• This rent runs 33% of the median local income ($104k/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 632 days. Have you received any prior offers? Is the seller open to a 20% 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.
• Schools are B-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.