100 Semi Cir

Horseshoe Bay, TX 78657

$595,000D

5 bd · 4.0 ba · 3,255 sqft · Built 1981 · SingleFamily · Active · 84 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,782/mo
• Mortgage (P&I): −$3,120
• Tax + insurance: −$818
• HOA: −$30
• Vac / Maint / Mgmt: −$794
• Net cashflow: $-980/mo
• Annual: $-11,764/yr
• Cap rate: 4.32%
• Cash-on-cash: -7.06%
• DSCR: 0.69
• 1% rule: 0.64%
• Cash to close: $166,600

Investor read

• This is a 5-bed/4.0-bath single-family listed at $595k.
• At list price, monthly cash flow is $-980 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $422k (29.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $378k (36.4% below list).
• It's been on market 84 days — a 6% lower offer ($559k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $378k (36.4% below list) — sets the bar for 1% rule.
• In year one you build about $10k of equity ($4k loan paydown + $6k appreciation (0.9% local appreciation)).
• Location reads 66/100 on livability (#625 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A-, housing A-; Watch: schools C-, amenities F, commute F.
• Llano ISD (town): math 40% / reading 43% proficiency, ranked #359 of 826 in TX (top 44%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 1223 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 121 units permitted in Llano County in 2024 (0 in 5+ unit buildings).
• Llano County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 11y 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 4, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 55% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 6→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.3% vs local median 1.0% in Horseshoe Bay — 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.
• At $3,782/mo this rent would consume 50% of the median local household income ($91k/yr) (locally 45% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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