537 Epiphany Ln

Lavon, TX 75166

$263,990D-

3 bd · 2.0 ba · 1,429 sqft · Built 2026 · SingleFamily · Pending · 112 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,203/mo
• Mortgage (P&I): −$1,384
• Tax + insurance: −$565
• HOA: −$155
• Vac / Maint / Mgmt: −$463
• Net cashflow: $-364/mo
• Annual: $-4,371/yr
• Cap rate: 5.21%
• Cash-on-cash: -3.88%
• DSCR: 0.83
• 1% rule: 0.83%
• Cash to close: $73,917

Investor read

• This is a 3-bed/2.0-bath single-family listed at $264k. Condition is rated poor.
• At list price, monthly cash flow is $-364 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $211k (20.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $220k (16.5% below list).
• It's been on market 112 days — a 9% lower offer ($240k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $211k (20.0% 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 66/100 on livability (#588 in TX) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, cost of living B; Watch: amenities F, commute F, health & safety F.
• Community ISD (rural): math 30% / reading 38% proficiency, ranked #479 of 826 in TX (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Leland E Edge Middle (math 25% / reading 35%, grade F, #1,056 of 1,662 statewide, top 65%, 931 students, 53% FRL) — zoned schools average 53% FRL vs 36% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: 640 active listings in the ZIP; 38 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 19,194 units permitted in Collin County in 2024 (3,988 in 5+ unit buildings).
• Collin County population projected at +60% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts; this cycle's ask has dropped $20k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); major wind risk, 27% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 112 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Significant damage and weathering
• Major: roof — Missing shingles and potential water damage
• Major: flooring — Worn and in need of replacement
• Major: interior walls/paint — Water damage and peeling paint
• Major: kitchen — Outdated and in need of updates
• Major: bathrooms — Damaged and in need of updates