Donley Plan

Sienna, TX 77459

$450,990D-

5 bd · 4.0 ba · 2,650 sqft · Built — · SingleFamily · Active · 174 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,475/mo
• Mortgage (P&I): −$2,679
• Tax + insurance: −$851
• HOA: −$0
• Vac / Maint / Mgmt: −$730
• Net cashflow: $-785/mo
• Annual: $-9,419/yr
• Cap rate: 4.45%
• Cash-on-cash: -6.58%
• DSCR: 0.71
• 1% rule: 0.68%
• Cash to close: $143,034

Investor read

• This is a 5-bed/4.0-bath single-family listed at $451k. Condition is rated excellent.
• At list price, monthly cash flow is $-785 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $397k (11.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $348k (22.9% below list).
• It's been on market 174 days — a 12% lower offer ($397k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $348k (22.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.7%/yr); year-one equity from $4k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Fort Bend ISD (suburban): math 44% / reading 53% proficiency, ranked #140 of 826 in TX (top 17%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Heritage Rose El (math 29% / reading 28%, grade F, #2,706 of 4,322 statewide, top 63%, 1,209 students, 83% FRL); Billy Baines Middle (math 47% / reading 53%, grade C, #347 of 1,662 statewide, top 21%, 1,296 students, 37% FRL); Ridge Point H S (math 61% / reading 69%, grade B, #198 of 1,632 statewide, top 12%, 3,170 students, 31% FRL) — zoned schools average 50% FRL vs 35% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents soft (-0.1%/yr); 1773 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals lingering (median 82d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 80% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 12,093 units permitted in Fort Bend County in 2024 (815 in 5+ unit buildings).
• Fort Bend County population projected at +75% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: severe wind risk, 99% 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.
• Cap rate 4.4% vs local median 2.8% in Sienna — 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.
• This rent runs 32% of the median local income ($129k/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 174 days. Have you received any prior offers? Is the seller open to a 23% 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.
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.