The McKinney (180) Plan

Buda, TX 78610

$310,990F

3 bd · 2.5 ba · 1,798 sqft · Built — · SingleFamily · Active · 228 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,321/mo
• Mortgage (P&I): −$2,074
• Tax + insurance: −$659
• HOA: −$0
• Vac / Maint / Mgmt: −$487
• Net cashflow: $-899/mo
• Annual: $-10,792/yr
• Cap rate: 3.56%
• Cash-on-cash: -9.75%
• DSCR: 0.57
• 1% rule: 0.59%
• Cash to close: $110,725

Investor read

• This is a 3-bed/2.5-bath single-family listed at $311k. Condition is rated fair.
• At list price, monthly cash flow is $-899 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $265k (14.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $232k (25.4% below list).
• It's been on market 228 days — a 12% lower offer ($274k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $232k (25.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k 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.
• Hays CISD (rural): math 35% / reading 41% proficiency, ranked #390 of 826 in TX (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Camino Real El (math 22% / reading 20%, grade F, #3,492 of 4,322 statewide, top 81%, 782 students, 76% FRL); R C Barton Middle (math 56% / reading 52%, grade B-, #270 of 1,662 statewide, top 16%, 816 students, 33% FRL); Jack C Hays H S (math 41% / reading 47%, grade F, #697 of 1,632 statewide, top 43%, 2,062 students, 36% FRL) — zoned schools at 48% FRL track the district average.
• Market conditions: Rents soft (-1.8%/yr); 1703 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 102d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 70% 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.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 228 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Kitchen — No photos of the kitchen
• Major: Bathrooms — No photos of the bathrooms
• Major: Flooring — No photos of the flooring
• Major: Interior walls/paint — No photos of the interior walls/paint
• Major: Landscaping/curb appeal — No photos of the landscaping/curb appeal