10600 Ridan Way

Buda, TX 78610

$265,000D-

3 bd · 2.0 ba · 1,375 sqft · Built 2024 · SingleFamily · Active · 154 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,085/mo
• Mortgage (P&I): −$1,390
• Tax + insurance: −$590
• HOA: −$35
• Vac / Maint / Mgmt: −$438
• Net cashflow: $-367/mo
• Annual: $-4,406/yr
• Cap rate: 4.63%
• Cash-on-cash: -5.94%
• DSCR: 0.74
• 1% rule: 0.79%
• Cash to close: $74,200

Investor read

• This is a 3-bed/2.0-bath single-family listed at $265k. Condition is rated good.
• At list price, monthly cash flow is $-367 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $200k (24.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $209k (21.3% below list).
• It's been on market 154 days — a 12% lower offer ($233k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $200k (24.5% below list) — sets the bar for cash-flow.
• 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 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.
• Del Valle ISD (rural): math 19% / reading 26% proficiency, ranked #749 of 826 in TX (top 91%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 77% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Creedmoor El (math 17% / reading 27%, grade F, #3,333 of 4,322 statewide, top 80%, 492 students, 94% FRL); Del Valle H S (math 17% / reading 28%, grade F, #1,354 of 1,632 statewide, top 83%, 3,460 students, 90% FRL).
• Market conditions: Rents soft (-1.8%/yr); 1513 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals lingering (median 43d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 17,121 units permitted in Travis County in 2024 (11,963 in 5+ unit buildings).
• Travis County population projected at +60% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 4.6% vs local median 3.4% in Buda — 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 154 days. Have you received any prior offers? Is the seller open to a 24% 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.