12603 Telge Rd Unit 8E-H

Cypress, TX 77429

$795,000D+

12 bd · 10.0 ba · 6,780 sqft · Built 2020 · MultiFamily · Active · 134 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,374/mo
• Mortgage (P&I): −$4,169
• Tax + insurance: −$1,325
• HOA: −$330
• Vac / Maint / Mgmt: −$1,549
• Net cashflow: $1/mo
• Annual: $17/yr
• Cap rate: 6.30%
• Cash-on-cash: 0.01%
• DSCR: 1.00
• 1% rule: 0.93%
• Cash to close: $222,600

Investor read

• This is a 4 × 3.0-bed/2.5-bath units multifamily listed at $795k. Condition is rated excellent.
• At list price, monthly cash flow is $1 ($17/yr) — positive. Per door: $0/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $737k (7.2% below list).
• It's been on market 134 days — a 12% lower offer ($700k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $700k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $24k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Cypress-Fairbanks ISD (suburban): math 45% / reading 52% proficiency, ranked #161 of 826 in TX (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lamkin El (math 31% / reading 42%, grade F, #1,883 of 4,322 statewide, top 44%, 893 students, 69% FRL); Arnold Middle (math 48% / reading 52%, grade C, #347 of 1,662 statewide, top 21%, 1,414 students, 67% FRL); Cypress-Fairbanks J J A E P (12 students, 0% FRL) — zoned schools at 45% FRL track the district average.
• Market conditions: 948 active listings in the ZIP; high-income renter base; 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.
• 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.
• Cap rate 6.3% vs local median 2.7% in Cypress — 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

• It's been on market 134 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?
• 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.
• 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.