23326 Spring Genesis Ln

Houston, TX 77493

$300,000D-

5 bd · 3.0 ba · 2,544 sqft · Built 2023 · SingleFamily · Pending · 13 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,810/mo
• Mortgage (P&I): −$1,573
• Tax + insurance: −$1,106
• HOA: −$63
• Vac / Maint / Mgmt: −$590
• Net cashflow: $-522/mo
• Annual: $-6,263/yr
• Cap rate: 4.21%
• Cash-on-cash: -7.46%
• DSCR: 0.67
• 1% rule: 0.94%
• Cash to close: $84,000

Investor read

• This is a 5-bed/3.0-bath single-family listed at $300k. Condition is rated good.
• At list price, monthly cash flow is $-522 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $235k (21.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $281k (6.3% below list).
• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $235k (21.5% 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 $9k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#184 in TX, #4,771 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, cost of living A+, housing A+; Watch: crime F.
• Katy ISD (suburban): math 61% / reading 63% proficiency, ranked #29 of 826 in TX (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Stockdick J H (math 41% / reading 51%, grade D+, #462 of 1,662 statewide, top 28%, 1,313 students, 55% FRL); Paetow H S (math 47% / reading 64%, grade C, #364 of 1,632 statewide, top 23%, 3,537 students, 62% FRL) — zoned schools average 58% FRL vs 27% district-wide (31 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 3.9% of price.
• Market conditions: Rents soft (-0.8%/yr); 2696 active listings in the ZIP; 26 comparable units currently listed for rent nearby; rentals at typical pace (median 17d on market — plan ~3-4 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.
• 4 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.2% vs local median 3.2% in Houston — 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?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.