333 Capstone Rd

Liberty Hill, TX 78642

$330,000D-

5 bd · 3.0 ba · 2,951 sqft · Built 2020 · SingleFamily · Active · 136 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,719/mo
• Mortgage (P&I): −$1,731
• Tax + insurance: −$1,004
• HOA: −$37
• Vac / Maint / Mgmt: −$571
• Net cashflow: $-623/mo
• Annual: $-7,480/yr
• Cap rate: 4.03%
• Cash-on-cash: -8.09%
• DSCR: 0.64
• 1% rule: 0.82%
• Cash to close: $92,400

Investor read

• This is a 5-bed/3.0-bath single-family listed at $330k. Condition is rated good.
• At list price, monthly cash flow is $-623 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $220k (33.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $272k (17.6% below list).
• It's been on market 136 days — a 12% lower offer ($290k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $220k (33.4% 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 $10k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#495 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: employment D+, amenities F, commute F.
• Liberty Hill ISD (rural): math 43% / reading 52% proficiency, ranked #160 of 826 in TX (top 19%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Bill Burden El (math 36% / reading 45%, grade F, #1,490 of 4,322 statewide, top 35%, 808 students, 19% FRL); Liberty Hill Middle (math 44% / reading 50%, grade D+, #424 of 1,662 statewide, top 27%, 944 students, 26% FRL); Liberty Hill H S (math 39% / reading 69%, grade C-, #422 of 1,632 statewide, top 26%, 2,001 students, 23% FRL) — zoned schools at 23% FRL track the district average.
• Watch-outs: property tax is 3.2% of price.
• Market conditions: Rents soft (-1.9%/yr); 1739 active listings in the ZIP; 24 comparable units currently listed for rent nearby; rentals lingering (median 37d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 7,543 units permitted in Williamson County in 2024 (1,425 in 5+ unit buildings).
• Williamson County population projected at +69% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major wind risk, 63% chance of damaging wind over 30y; major wildfire risk; 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 3.0% in Liberty Hill — 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 136 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?
• 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.
• 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.