705 Sunrise Ave #201

Sunrise Beach Village, TX 78643

$799D

None bd · None ba · — sqft · Built 1997 · Condo · Active · 43 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,650/mo
• Mortgage (P&I): −$4
• Tax + insurance: −$1
• HOA: −$0
• Vac / Maint / Mgmt: −$556
• Net cashflow: $2,088/mo
• Annual: $25,056/yr
• Cap rate: 3142.18%
• Cash-on-cash: 11199.60%
• DSCR: 499.32
• 1% rule: 331.66%
• Cash to close: $224

Investor read

• This is a condo listed at $799.
• 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 $799).
• It's been on market 43 days — a 3% lower offer ($775) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $775 (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5 of loan paydown is wiped out by about $24 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $224 cash investment doubles in ~1 year — after that, you're playing with house money.
• Cap rate 3142.2% 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 43 days. Have you received any prior offers? Is the seller open to a 3% 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?
• 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?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.