Cali - X40I Plan

Rosenberg, TX 77417

$356,990D-

4 bd · 2.0 ba · 1,796 sqft · Built — · SingleFamily · Active · 30 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,856/mo
• Mortgage (P&I): −$2,157
• Tax + insurance: −$685
• HOA: −$0
• Vac / Maint / Mgmt: −$600
• Net cashflow: $-586/mo
• Annual: $-7,030/yr
• Cap rate: 4.58%
• Cash-on-cash: -6.10%
• DSCR: 0.73
• 1% rule: 0.69%
• Cash to close: $115,160

Investor read

• This is a 4-bed/2.0-bath single-family listed at $357k. Condition is rated fair.
• At list price, monthly cash flow is $-586 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $327k (8.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $286k (20.0% below list).
• It's been on market 30 days — a 2% lower offer ($352k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $286k (20.0% below list) — sets the bar for 1% rule.
• In year one you build about $20k of equity ($3k loan paydown + $17k appreciation (4.2% local appreciation)).
• Location reads 62/100 on livability (#922 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: amenities F, commute F, health & safety F.
• Lamar CISD (suburban): math 50% / reading 53% proficiency, ranked #116 of 826 in TX (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Beasley El (math 42% / reading 27%, grade F, #1,995 of 4,322 statewide, top 50%, 366 students, 86% FRL); George J H (math 27% / reading 28%, grade F, #1,156 of 1,662 statewide, top 71%, 1,173 students, 81% FRL); B F Terry H S (math 34% / reading 41%, grade F, #888 of 1,632 statewide, top 55%, 1,739 students, 74% FRL) — zoned schools average 80% FRL vs 43% district-wide (38 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 33% at this address vs 52% district-wide (-18 pts) — the specific schools serving this property underperform the Lamar CISD average; the district grade overstates school quality for this exact location.
• Market conditions: 232 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 12,093 units permitted in Fort Bend County in 2024 (815 in 5+ unit buildings).
• Fort Bend County population projected at +75% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 2, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.6% vs local median 3.4% in Rosenberg — 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Blurred image, no visible details