6735 Coral Ridge Rd

Houston, TX 77069

$300,000D

5 bd · 3.5 ba · 3,358 sqft · Built 1989 · SingleFamily · Active · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,413/mo
• Mortgage (P&I): −$1,573
• Tax + insurance: −$845
• HOA: −$55
• Vac / Maint / Mgmt: −$507
• Net cashflow: $-567/mo
• Annual: $-6,803/yr
• Cap rate: 4.03%
• Cash-on-cash: -8.10%
• DSCR: 0.64
• 1% rule: 0.80%
• Cash to close: $84,000

Investor read

• This is a 5-bed/3.5-bath single-family listed at $300k.
• At list price, monthly cash flow is $-567 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $200k (33.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $241k (19.6% below list).
• It's been on market 38 days — a 3% lower offer ($291k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $200k (33.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-1.1%/yr); year-one equity from $2k of loan paydown is wiped out by about $3k 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.
• Cypress-Fairbanks ISD (suburban): math 45% / reading 52% proficiency, ranked #161 of 826 in TX (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Yeager El (math 35% / reading 42%, grade F, #1,680 of 4,322 statewide, top 40%, 830 students, 72% FRL); Bleyl Middle (math 35% / reading 45%, grade F, #646 of 1,662 statewide, top 40%, 1,451 students, 72% FRL); Cypress Creek H S (math 60% / reading 59%, grade C+, #275 of 1,632 statewide, top 19%, 3,366 students, 59% FRL) — zoned schools average 68% FRL vs 43% district-wide (25 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 2.9% of price.
• Market conditions: Rents rising (+3.5%/yr); 189 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 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.
• Current owner paid $145k; list at $300k implies a 107% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major flood risk; 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 4.0% vs local median 3.2% in Houston — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• This rent runs 36% of the median local income ($80k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 38 days. Have you received any prior offers? Is the seller open to a 33% concession, seller financing, or rate buy-down credit?
• 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?