1226 Charlotte Way

Wharton, TX 77488

$169,991D

3 bd · 2.0 ba · 1,266 sqft · Built 2026 · SingleFamily · Pending · 68 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,462/mo
• Mortgage (P&I): −$891
• Tax + insurance: −$283
• HOA: −$118
• Vac / Maint / Mgmt: −$307
• Net cashflow: $-138/mo
• Annual: $-1,658/yr
• Cap rate: 5.32%
• Cash-on-cash: -3.48%
• DSCR: 0.84
• 1% rule: 0.86%
• Cash to close: $47,597

Investor read

• This is a 3-bed/2.0-bath single-family listed at $170k. Condition is rated good.
• At list price, monthly cash flow is $-138 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $150k (11.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $146k (14.0% below list).
• It's been on market 68 days — a 6% lower offer ($160k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $146k (14.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#693 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety B; Watch: crime C-, amenities F, commute F.
• Wharton ISD (town): math 28% / reading 31% proficiency, ranked #651 of 826 in TX (top 79%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 70% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Wharton El (math 22% / reading 25%, grade F, #3,247 of 4,322 statewide, top 76%, 476 students, 77% FRL); Wharton J H (math 32% / reading 32%, grade F, #971 of 1,662 statewide, top 60%, 369 students, 77% FRL); Wharton H S (math 32% / reading 37%, grade F, #963 of 1,632 statewide, top 61%, 570 students, 74% FRL).
• Market conditions: 166 active listings in the ZIP; 191 units permitted in Wharton County in 2024 (45 in 5+ unit buildings).
• 2 sale attempts; this cycle's ask is 7% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Cap rate 5.3% vs local median 3.2% in Wharton — 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 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 68 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
• 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.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.