4831 Sycamore Ave #16

Pasadena, TX 77503

$1,360,000C+

17 bd · 17.0 ba · 3,264 sqft · Built 1963 · MultiFamily · Active · 362 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $15,977/mo
• Mortgage (P&I): −$7,132
• Tax + insurance: −$1,282
• HOA: −$0
• Vac / Maint / Mgmt: −$3,355
• Net cashflow: $4,208/mo
• Annual: $50,492/yr
• Cap rate: 10.01%
• Cash-on-cash: 13.26%
• DSCR: 1.59
• 1% rule: 1.17%
• Cash to close: $380,800

Investor read

• This is a 17 × 1-bed/?-bath units multifamily listed at $1.36M.
• At list price, monthly cash flow is $4k ($50k/yr) — positive. Per door: $248/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($16k rent vs $1.36M).
• It's been on market 362 days — a 12% lower offer ($1.20M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.20M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $9k of loan paydown is wiped out by about $41k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#600 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D+, crime F, amenities F.
• Pasadena ISD (suburban): math 29% / reading 32% proficiency, ranked #612 of 826 in TX (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 71% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Golden Acres El (math 17% / reading 22%, grade F, #3,583 of 4,322 statewide, top 86%, 382 students, 90% FRL); Bondy Int (math 44% / reading 45%, grade D, #491 of 1,662 statewide, top 31%, 966 students, 75% FRL); Pasadena H S (math 41% / reading 31%, grade F, #930 of 1,632 statewide, top 57%, 2,221 students, 90% FRL).
• Market conditions: Rents falling (-9.4%/yr); 82 active listings in the ZIP; 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.
• 3 sale attempts since 6y 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: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 10.0% vs local median 3.5% in Pasadena — 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.
• At $15,977/mo this rent would consume 287% of the median local household income ($67k/yr) (locally 1101% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 362 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1963 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?
• 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?