23215 Birmingham Grove Ln

Tomball, TX 77375

$275,000D

4 bd · 2.0 ba · 1,684 sqft · Built 2024 · SingleFamily · Active · 87 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,393/mo
• Mortgage (P&I): −$1,442
• Tax + insurance: −$771
• HOA: −$81
• Vac / Maint / Mgmt: −$503
• Net cashflow: $-404/mo
• Annual: $-4,851/yr
• Cap rate: 4.53%
• Cash-on-cash: -6.30%
• DSCR: 0.72
• 1% rule: 0.87%
• Cash to close: $77,000

Investor read

• This is a 4-bed/2.0-bath single-family listed at $275k. Condition is rated good.
• At list price, monthly cash flow is $-404 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $204k (26.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $239k (13.0% below list).
• It's been on market 87 days — a 6% lower offer ($258k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $204k (26.0% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#155 in TX, #4,239 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety B+; Watch: amenities F, commute F.
• Klein ISD (suburban): math 41% / reading 48% proficiency, ranked #213 of 826 in TX (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Schultz El (math 41% / reading 48%, grade F, #1,155 of 4,322 statewide, top 29%, 566 students, 61% FRL); Krimmel Intermed (math 51% / reading 52%, grade C, #318 of 1,662 statewide, top 20%, 1,294 students, 42% FRL); Klein Oak H S (math 47% / reading 60%, grade C-, #428 of 1,632 statewide, top 27%, 3,621 students, 38% FRL).
• Watch-outs: property tax is 2.9% of price.
• Market conditions: Rents soft (-0.5%/yr); 1144 active listings in the ZIP; 14 comparable units currently listed for rent nearby; rentals lingering (median 185d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 71% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 29,883 units permitted in Harris County in 2024 (8,621 in 5+ unit buildings).
• Harris County population projected at +47% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 2y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: major flood risk; 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.
• Cap rate 4.5% vs local median 2.9% in Tomball — 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 87 days. Have you received any prior offers? Is the seller open to a 26% concession, seller financing, or rate buy-down credit?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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 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?