Midland Plan

Corpus Christi, TX 78380

$391,900F

4 bd · 3.0 ba · 2,170 sqft · Built — · SingleFamily · Active · 469 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,515/mo
• Mortgage (P&I): −$2,143
• Tax + insurance: −$681
• HOA: −$0
• Vac / Maint / Mgmt: −$528
• Net cashflow: $-838/mo
• Annual: $-10,052/yr
• Cap rate: 3.83%
• Cash-on-cash: -8.78%
• DSCR: 0.61
• 1% rule: 0.62%
• Cash to close: $114,424

Investor read

• This is a 4-bed/3.0-bath single-family listed at $392k. Condition is rated excellent.
• At list price, monthly cash flow is $-838 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $287k (26.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $251k (35.8% below list).
• It's been on market 469 days — a 12% lower offer ($345k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $251k (35.8% 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 78/100 on livability (#66 in TX, #2,404 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: crime F.
• Calallen ISD (urban): math 42% / reading 44% proficiency, ranked #249 of 826 in TX (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Calallen Wood River El (math 57% / reading 57%, grade C+, #505 of 4,322 statewide, top 13%, 479 students, 54% FRL); Calallen Middle (math 40% / reading 40%, grade F, #646 of 1,662 statewide, top 40%, 968 students, 53% FRL); Calallen H S (math 47% / reading 59%, grade C-, #437 of 1,632 statewide, top 27%, 1,180 students, 51% FRL).
• Market conditions: 310 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals leasing fast (median 1d on market — plan ~1-2 weeks tenant-placement turnaround); 1,397 units permitted in Nueces County in 2024 (47 in 5+ unit buildings).
• Nueces County population projected at +36% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 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.
• At $2,515/mo this rent would consume 51% of the median local household income ($59k/yr) — very limited rent-growth headroom before tenants either downsize or default.

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 469 days. Have you received any prior offers? Is the seller open to a 36% 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.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.