8933 Karens Cor

The Homesteads, TX 76009

$78,500B-

4 bd · 2.0 ba · 1,456 sqft · Built 2021 · Manufactured · Active · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,022/mo
• Mortgage (P&I): −$412
• Tax + insurance: −$252
• HOA: −$0
• Vac / Maint / Mgmt: −$425
• Net cashflow: $934/mo
• Annual: $11,204/yr
• Cap rate: 20.57%
• Cash-on-cash: 50.98%
• DSCR: 3.27
• 1% rule: 2.58%
• Cash to close: $21,980

Investor read

• This is a 4-bed/2.0-bath manufactured listed at $78k. Condition is rated poor.
• At list price, monthly cash flow is $934 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $78k).
• It's been on market 26 days — a 2% lower offer ($77k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $77k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $543 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Venus ISD (town): math 25% / reading 32% proficiency, ranked #646 of 826 in TX (top 78%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 60% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: property tax is 3.3% of price.
• Market conditions: 359 active listings in the ZIP; solid renter incomes; 2,152 units permitted in Johnson County in 2024 (76 in 5+ unit buildings).
• Johnson County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 30% of the median local income ($80k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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: Landscaping — The area is overgrown and needs significant trimming and landscaping to improve curb appeal.
• Major: Exterior cleaning — The home's exterior appears dirty and in need of a thorough cleaning to improve its appearance.
• Major: Structural inspection — The home is a manufactured unit, and a structural inspection is necessary to ensure it is safe and secure.
• Major: Landscaping and curb appeal — The area is unkempt and requires significant landscaping to improve the home's curb appeal and overall appearance.