Plan 1360 Modeled Plan

Tomball, TX 77377

$224,995D-

3 bd · 2.0 ba · 1,360 sqft · Built — · SingleFamily · Active · 566 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,102/mo
• Mortgage (P&I): −$1,390
• Tax + insurance: −$442
• HOA: −$0
• Vac / Maint / Mgmt: −$441
• Net cashflow: $-171/mo
• Annual: $-2,053/yr
• Cap rate: 5.52%
• Cash-on-cash: -2.77%
• DSCR: 0.88
• 1% rule: 0.79%
• Cash to close: $74,219

Investor read

• This is a 3-bed/2.0-bath single-family listed at $225k. Condition is rated poor.
• At list price, monthly cash flow is $-171 ($-2k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $210k (6.6% below list).
• It's been on market 566 days — a 12% lower offer ($198k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $198k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#155 in TX, #4,239 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety B+; Watch: amenities F, commute F.
• Tomball ISD (suburban): math 66% / reading 63% proficiency, ranked #25 of 826 in TX (top 3%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Rosehill El (math 29% / reading 44%, grade F, #1,883 of 4,322 statewide, top 44%, 695 students, 56% FRL); Tomball Int (math 55% / reading 45%, grade C, #347 of 1,662 statewide, top 21%, 988 students, 46% FRL); Tomball H S (math 74% / reading 69%, grade B+, #111 of 1,632 statewide, top 7%, 2,801 students, 34% FRL) — zoned schools average 46% FRL vs 26% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents soft (-0.7%/yr); 730 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 7d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 29,883 units permitted in Harris County in 2024 (8,621 in 5+ unit buildings).
• Harris County population projected at +47% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 2y ago; this cycle's ask has dropped $24k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 5.5% vs local median 2.7% in Tomball — 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 566 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — No visible roof details.
• Major: siding — No visible siding details.
• Major: paint — No visible paint details.
• Major: landscaping — No visible landscaping details.
• Major: curb appeal — No visible curb appeal details.