Yuma Plan

Santa Fe, TX 77510

$335,990F

4 bd · 3.0 ba · 2,567 sqft · Built — · SingleFamily · Active · 540 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,434/mo
• Mortgage (P&I): −$1,873
• Tax + insurance: −$595
• HOA: −$0
• Vac / Maint / Mgmt: −$511
• Net cashflow: $-545/mo
• Annual: $-6,546/yr
• Cap rate: 4.46%
• Cash-on-cash: -6.55%
• DSCR: 0.71
• 1% rule: 0.68%
• Cash to close: $100,006

Investor read

• This is a 4-bed/3.0-bath single-family listed at $336k. Condition is rated excellent.
• At list price, monthly cash flow is $-545 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $278k (17.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $243k (27.6% below list).
• It's been on market 540 days — a 12% lower offer ($296k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $243k (27.6% 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 $11k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#550 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Santa Fe ISD (suburban): math 38% / reading 39% proficiency, ranked #385 of 826 in TX (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Dan J Kubacak El (math 44% / reading 38%, grade F, #1,462 of 4,322 statewide, top 34%, 687 students, 56% FRL); Santa Fe J H (math 34% / reading 37%, grade F, #827 of 1,662 statewide, top 51%, 1,009 students, 52% FRL); Santa Fe H S (math 19% / reading 34%, grade F, #1,228 of 1,632 statewide, top 76%, 1,369 students, 47% FRL) — zoned schools average 52% FRL vs 35% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 397 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 3,258 units permitted in Galveston County in 2024 (0 in 5+ unit buildings).
• Galveston County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 4.5% vs local median 3.2% in Santa Fe — 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 30% of the median local income ($96k/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 540 days. Have you received any prior offers? Is the seller open to a 28% 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.