5719 Roadhouse Dr

Terrell, TX 75126

$246,000D

3 bd · 2.0 ba · 1,401 sqft · Built 2026 · SingleFamily · Active · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,108/mo
• Mortgage (P&I): −$1,290
• Tax + insurance: −$410
• HOA: −$0
• Vac / Maint / Mgmt: −$443
• Net cashflow: $-35/mo
• Annual: $-418/yr
• Cap rate: 6.12%
• Cash-on-cash: -0.61%
• DSCR: 0.97
• 1% rule: 0.86%
• Cash to close: $68,880

Investor read

• This is a 3-bed/2.0-bath single-family listed at $246k. Condition is rated good.
• At list price, monthly cash flow is $-35 ($-418/yr) — negative.
• To cash-flow at today's rent, offer at most $241k (2.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $211k (14.3% below list).
• It's been on market 17 days — a 2% lower offer ($242k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $211k (14.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#520 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities C-, employment D, commute F.
• Forney ISD (rural): math 41% / reading 44% proficiency, ranked #234 of 826 in TX (top 28%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Crosby El (math 37% / reading 36%, grade F, #1,883 of 4,322 statewide, top 44%, 682 students, 59% FRL); Brown Middle (math 29% / reading 39%, grade F, #892 of 1,662 statewide, top 55%, 673 students, 56% FRL); North Forney H S (math 32% / reading 45%, grade F, #866 of 1,632 statewide, top 54%, 2,502 students, 49% FRL) — zoned schools average 55% FRL vs 26% district-wide (28 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+1.4%/yr); 2200 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,747 units permitted in Kaufman County in 2024 (180 in 5+ unit buildings).
• Kaufman County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 6.1% vs local median 3.8% in Terrell — 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.
• 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.