124 Leland Ave

Buda, TX 78610

$394,990F

3 bd · 2.0 ba · 1,811 sqft · Built 2026 · SingleFamily · Active · 88 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,354/mo
• Mortgage (P&I): −$2,071
• Tax + insurance: −$658
• HOA: −$60
• Vac / Maint / Mgmt: −$494
• Net cashflow: $-930/mo
• Annual: $-11,164/yr
• Cap rate: 3.47%
• Cash-on-cash: -10.09%
• DSCR: 0.55
• 1% rule: 0.60%
• Cash to close: $110,597

Investor read

• This is a 3-bed/2.0-bath single-family listed at $395k. Condition is rated good.
• At list price, monthly cash flow is $-930 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $260k (34.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $235k (40.4% below list).
• It's been on market 88 days — a 6% lower offer ($371k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $235k (40.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#339 in TX) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A-; Watch: amenities F, commute F, health & safety F.
• Hays CISD (rural): math 35% / reading 41% proficiency, ranked #390 of 826 in TX (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Elm Grove El (math 61% / reading 72%, grade B+, #220 of 4,322 statewide, top 5%, 706 students, 13% FRL); Eric Dahlstrom Middle (math 56% / reading 53%, grade B-, #256 of 1,662 statewide, top 16%, 902 students, 15% FRL); Jack C Hays H S (math 41% / reading 47%, grade F, #697 of 1,632 statewide, top 43%, 2,062 students, 36% FRL) — zoned schools average 21% FRL vs 43% district-wide (22 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 55% at this address vs 38% district-wide (+17 pts) — the actual schools serving this property are materially stronger than the Hays CISD average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents soft (-1.8%/yr); 1703 active listings in the ZIP; 38 comparable units currently listed for rent nearby; rentals lingering (median 69d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 68% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 5,270 units permitted in Hays County in 2024 (1,464 in 5+ unit buildings).
• Hays County population projected at +93% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts; this cycle's ask has dropped $50k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: major flood risk; severe wind risk, 80% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 88 days. Have you received any prior offers? Is the seller open to a 40% 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.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.