Orchard Plan

Godley, TX 76044

$313,990F

3 bd · 2.0 ba · 2,001 sqft · Built — · SingleFamily · Active · 583 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,509/mo
• Mortgage (P&I): −$1,772
• Tax + insurance: −$563
• HOA: −$0
• Vac / Maint / Mgmt: −$527
• Net cashflow: $-353/mo
• Annual: $-4,233/yr
• Cap rate: 5.04%
• Cash-on-cash: -4.47%
• DSCR: 0.80
• 1% rule: 0.74%
• Cash to close: $94,607

Investor read

• This is a 3-bed/2.0-bath single-family listed at $314k. Condition is rated excellent.
• At list price, monthly cash flow is $-353 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $287k (8.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $251k (20.1% below list).
• It's been on market 583 days — a 12% lower offer ($276k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $251k (20.1% 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 $10k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#226 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety D+, amenities F, commute F.
• Godley ISD (rural): math 34% / reading 38% proficiency, ranked #466 of 826 in TX (top 56%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Legacy El (math 39% / reading 37%, grade F, #1,709 of 4,322 statewide, top 40%, 408 students, 32% FRL); Godley H S (math 27% / reading 51%, grade F, #859 of 1,632 statewide, top 53%, 777 students, 42% FRL).
• Market conditions: 780 active listings in the ZIP; 14 comparable units currently listed for rent nearby; rentals lingering (median 87d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 79% of comp listings sitting > 30 days — soft ceiling on asking rent; 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 5.0% vs local median 3.5% in Godley — 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 583 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• 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 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?
• 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.