705 Sunrise Ave #202

Sunrise Beach Village, TX 78643

$1,549D

None bd · None ba · — sqft · Built 1997 · Condo · Active · 190 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,650/mo
• Mortgage (P&I): −$8
• Tax + insurance: −$3
• HOA: −$0
• Vac / Maint / Mgmt: −$556
• Net cashflow: $2,083/mo
• Annual: $24,994/yr
• Cap rate: 1619.82%
• Cash-on-cash: 5762.60%
• DSCR: 257.40
• 1% rule: 171.08%
• Cash to close: $434

Investor read

• This is a condo listed at $2k.
• At list price, monthly cash flow is $2k ($25k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $2k).
• It's been on market 190 days — a 12% lower offer ($1k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $11 of loan paydown is wiped out by about $46 of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#670 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A; Watch: schools D+, amenities F, commute F.
• Llano ISD (town): math 40% / reading 43% proficiency, ranked #359 of 826 in TX (top 44%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 241 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 121 units permitted in Llano County in 2024 (0 in 5+ unit buildings).
• Llano County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts; this cycle's ask is 20% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $434 cash investment doubles in ~1 year — after that, you're playing with house money.
• Cap rate 1619.8% vs local median 0.4% in Sunrise Beach Village — 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 190 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?
• 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?
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?
• What's the documented flood / surge / shoreline-erosion history here (FEMA AND non-FEMA — e.g., storm surge, creek backup, septic-field saturation)?