10718 Karen Sue Ct

Hawk Cove, TX 75474

$355,000D-

3 bd · 2.0 ba · 1,819 sqft · Built 2021 · SingleFamily · Active · 35 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,079/mo
• Mortgage (P&I): −$1,862
• Tax + insurance: −$602
• HOA: −$10
• Vac / Maint / Mgmt: −$437
• Net cashflow: $-831/mo
• Annual: $-9,973/yr
• Cap rate: 3.48%
• Cash-on-cash: -10.03%
• DSCR: 0.55
• 1% rule: 0.59%
• Cash to close: $99,400

Investor read

• This is a 3-bed/2.0-bath single-family listed at $355k.
• At list price, monthly cash flow is $-831 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $208k (41.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $208k (41.4% below list).
• It's been on market 35 days — a 3% lower offer ($344k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $208k (41.4% below list) — sets the bar for 1% rule.
• In year one you build about $38k of equity ($2k loan paydown + $36k appreciation (10.0% local appreciation)).
• Location reads 50/100 on livability (#1,499 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Quinlan ISD (rural): math 27% / reading 34% proficiency, ranked #610 of 826 in TX (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: D C Cannon El (765 students, 81% FRL) — zoned schools average 81% FRL vs 60% district-wide (22 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 335 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 1,289 units permitted in Hunt County in 2024 (527 in 5+ unit buildings).
• Hunt County population projected at +15% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 5y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 2, paydown + projected appreciation supports a ~$61k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; 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 39% of the median local income ($64k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 35 days. Have you received any prior offers? Is the seller open to a 41% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.