2633 Steve St

Burleson, TX 76028

$539,990C-

4 bd · 3.0 ba · 2,670 sqft · Built 2026 · SingleFamily · Active · 55 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,643/mo
• Mortgage (P&I): −$2,832
• Tax + insurance: −$900
• HOA: −$42
• Vac / Maint / Mgmt: −$1,185
• Net cashflow: $684/mo
• Annual: $8,210/yr
• Cap rate: 7.81%
• Cash-on-cash: 5.43%
• DSCR: 1.24
• 1% rule: 1.05%
• Cash to close: $151,197

Investor read

• This is a 4-bed/3.0-bath single-family listed at $540k. Condition is rated excellent.
• At list price, monthly cash flow is $684 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $540k).
• It's been on market 55 days — a 3% lower offer ($524k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $524k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#53 in TX, #2,133 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Joshua ISD (rural): math 52% / reading 50% proficiency, ranked #139 of 826 in TX (top 17%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: North Joshua El (math 66% / reading 69%, grade B+, #189 of 4,322 statewide, top 5%, 683 students, 28% FRL); R C Loflin Middle (math 41% / reading 45%, grade D-, #540 of 1,662 statewide, top 33%, 730 students, 55% FRL); Joshua H S (math 67% / reading 15%, grade F, #774 of 1,632 statewide, top 49%, 1,242 students, 44% FRL) — zoned schools at 42% FRL track the district average.
• Market conditions: Rents rising (+1.8%/yr); 684 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 2,152 units permitted in Johnson County in 2024 (76 in 5+ unit buildings).
• Johnson County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 7.8% vs local median 3.5% in Burleson — 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 $5,643/mo this rent would consume 67% of the median local household income ($101k/yr) (locally 1117% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 55 days. Have you received any prior offers? Is the seller open to a 3% 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.