307 Beachside Dr

Tool, TX 75163

$529,900B+

4 bd · 3.0 ba · 1,796 sqft · Built 2020 · SingleFamily · Pending · 19 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,514/mo
• Mortgage (P&I): −$2,779
• Tax + insurance: −$601
• HOA: −$46
• Vac / Maint / Mgmt: −$1,788
• Net cashflow: $3,301/mo
• Annual: $39,607/yr
• Cap rate: 13.77%
• Cash-on-cash: 26.69%
• DSCR: 2.19
• 1% rule: 1.61%
• Cash to close: $148,372

Investor read

• This is a 4-bed/3.0-bath single-family listed at $530k.
• At list price, monthly cash flow is $3k ($40k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($9k rent vs $530k).
• It's been on market 19 days — a 2% lower offer ($522k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $522k (1.5% below list) — sets the bar for market timing.
• In year one you build about $9k of equity ($4k loan paydown + $5k appreciation (1.0% local appreciation)).
• Location reads 66/100 on livability (#651 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D, amenities F, commute F.
• Malakoff ISD (town): math 48% / reading 54% proficiency, ranked #187 of 826 in TX (top 23%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Malakoff El (math 58% / reading 54%, grade C+, #574 of 4,322 statewide, top 14%, 457 students, 75% FRL).
• Market conditions: 162 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 263 units permitted in Henderson County in 2024 (0 in 5+ unit buildings).
• At projected returns (1.0% appreciation + 3.0% rent growth), your $148k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 60% chance of damaging wind over 30y; extreme-heat days projected 7→26/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 13.8% vs local median 2.8% in Tool — 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 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.
• 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.