Kitson Plan

Anna, TX 75409

$260,999F

3 bd · 2.0 ba · 1,464 sqft · Built — · SingleFamily · Active · 105 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,171/mo
• Mortgage (P&I): −$1,763
• Tax + insurance: −$560
• HOA: −$0
• Vac / Maint / Mgmt: −$456
• Net cashflow: $-609/mo
• Annual: $-7,305/yr
• Cap rate: 4.12%
• Cash-on-cash: -7.76%
• DSCR: 0.65
• 1% rule: 0.65%
• Cash to close: $94,152

Investor read

• This is a 3-bed/2.0-bath single-family listed at $261k. Condition is rated excellent.
• At list price, monthly cash flow is $-609 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $248k (4.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $217k (16.8% below list).
• It's been on market 105 days — a 9% lower offer ($238k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $217k (16.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#127 in TX, #3,880 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A; Watch: amenities F, commute F.
• Anna ISD (rural): math 44% / reading 41% proficiency, ranked #271 of 826 in TX (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Sue Evelyn Rattan El (math 45% / reading 41%, grade F, #1,283 of 4,322 statewide, top 30%, 655 students, 51% FRL); Anna Middle (math 39% / reading 37%, grade F, #717 of 1,662 statewide, top 44%, 1,089 students, 51% FRL); Anna H S (math 58% / reading 57%, grade C, #327 of 1,632 statewide, top 20%, 1,405 students, 52% FRL).
• Market conditions: Rents soft (-1.9%/yr); 1669 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 72d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 72% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 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.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→22/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 105 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.