5804 Circulo Dr Unit 2A

Lago Vista, TX 78645

$170,000C-

3 bd · 3.0 ba · 1,526 sqft · Built 1971 · Condo · Active · 195 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,024/mo
• Mortgage (P&I): −$891
• Tax + insurance: −$283
• HOA: −$468
• Vac / Maint / Mgmt: −$425
• Net cashflow: $-44/mo
• Annual: $-530/yr
• Cap rate: 5.98%
• Cash-on-cash: -1.11%
• DSCR: 0.95
• 1% rule: 1.19%
• Cash to close: $47,600

Investor read

• This is a 3-bed/3.0-bath condo listed at $170k. Condition is rated good.
• At list price, monthly cash flow is $-44 ($-530/yr) — negative.
• To cash-flow at today's rent, offer at most $164k (3.8% below list).
• Meets the 1% rule at list price ($2k rent vs $170k).
• It's been on market 195 days — a 12% lower offer ($150k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $150k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#275 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Lago Vista ISD (rural): math 33% / reading 51% proficiency, ranked #269 of 826 in TX (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lago Vista El (math 32% / reading 47%, grade F, #1,545 of 4,322 statewide, top 38%, 502 students, 34% FRL); Lago Vista Middle (math 28% / reading 47%, grade F, #736 of 1,662 statewide, top 45%, 433 students, 25% FRL); Lago Vista H S (math 42% / reading 57%, grade D, #509 of 1,632 statewide, top 34%, 636 students, 22% FRL) — zoned schools at 27% FRL track the district average.
• Watch-outs: HOA is 23% of rent.
• Market conditions: Rents rising (+3.0%/yr); 1388 active listings in the ZIP; 33 comparable units currently listed for rent nearby; rentals lingering (median 77d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 76% 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 6.0% vs local median 2.3% in Lago Vista — 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 195 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1971 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.
• 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.