Harvest Ridge 2051 Plan

Elgin, TX 78621

$315,990F

3 bd · 2.5 ba · 2,051 sqft · Built — · SingleFamily · Active · 952 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,029/mo
• Mortgage (P&I): −$1,812
• Tax + insurance: −$576
• HOA: −$0
• Vac / Maint / Mgmt: −$426
• Net cashflow: $-785/mo
• Annual: $-9,423/yr
• Cap rate: 3.57%
• Cash-on-cash: -9.74%
• DSCR: 0.57
• 1% rule: 0.59%
• Cash to close: $96,757

Investor read

• This is a 3-bed/2.5-bath single-family listed at $316k.
• At list price, monthly cash flow is $-785 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $232k (26.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $203k (35.8% below list).
• It's been on market 952 days — a 12% lower offer ($278k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $203k (35.8% below list) — sets the bar for 1% rule.
• In year one you build about $37k of equity ($2k loan paydown + $35k appreciation (10.0% local appreciation)).
• Location reads 74/100 on livability (#167 in TX, #4,404 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools F, amenities F, commute F.
• Elgin ISD (rural): math 17% / reading 26% proficiency, ranked #741 of 826 in TX (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+3.1%/yr); 807 active listings in the ZIP; 29 comparable units currently listed for rent nearby; rentals at typical pace (median 18d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,841 units permitted in Bastrop County in 2024 (150 in 5+ unit buildings).
• Bastrop County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 3y ago; this cycle's ask has dropped $67k (17%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$59k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 952 days. Have you received any prior offers? Is the seller open to a 36% 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 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?
• 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.