1804 Stonechat

Canyon Lake, TX 78130

$225,000D+

4 bd · 2.0 ba · 1,667 sqft · Built 2025 · SingleFamily · Active · 237 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,916/mo
• Mortgage (P&I): −$1,180
• Tax + insurance: −$375
• HOA: −$32
• Vac / Maint / Mgmt: −$402
• Net cashflow: $-73/mo
• Annual: $-876/yr
• Cap rate: 5.90%
• Cash-on-cash: -1.39%
• DSCR: 0.94
• 1% rule: 0.85%
• Cash to close: $63,000

Investor read

• This is a 4-bed/2.0-bath single-family listed at $225k. Condition is rated excellent.
• At list price, monthly cash flow is $-73 ($-876/yr) — negative.
• To cash-flow at today's rent, offer at most $214k (4.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $192k (14.8% below list).
• It's been on market 237 days — a 12% lower offer ($198k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $192k (14.8% 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 $7k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#534 in TX) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, cost of living A; Watch: amenities F, commute F, health & safety F.
• New Braunfels ISD (urban): math 47% / reading 53% proficiency, ranked #157 of 826 in TX (top 19%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Klein Road El (math 43% / reading 50%, grade D-, #1,080 of 4,322 statewide, top 25%, 697 students, 46% FRL); New Braunfels Middle (math 44% / reading 46%, grade D, #479 of 1,662 statewide, top 29%, 1,301 students, 44% FRL); New Braunfels H S (math 53% / reading 10%, grade F, #1,073 of 1,632 statewide, top 66%, 1,926 students, 32% FRL) — zoned schools at 41% FRL track the district average.
• Market conditions: Rents soft (-2.0%/yr); 2782 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 68d 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; 2,064 units permitted in Guadalupe County in 2024 (133 in 5+ unit buildings).
• Guadalupe County population projected at +61% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts; this cycle's ask has dropped $20k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 5.9% vs local median 2.5% in Canyon Lake — 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

• 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 237 days. Have you received any prior offers? Is the seller open to a 15% 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?
• 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.
• 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.