18900 Nicklaus Dr

Point Venture, TX 78645

$220,000D-

2 bd · 1.5 ba · 1,152 sqft · Built 2020 · Townhouse · Active · 370 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,906/mo
• Mortgage (P&I): −$1,154
• Tax + insurance: −$623
• HOA: −$230
• Vac / Maint / Mgmt: −$400
• Net cashflow: $-500/mo
• Annual: $-6,005/yr
• Cap rate: 3.56%
• Cash-on-cash: -9.75%
• DSCR: 0.57
• 1% rule: 0.87%
• Cash to close: $61,600

Investor read

• This is a 2-bed/1.5-bath townhouse listed at $220k. Condition is rated good.
• At list price, monthly cash flow is $-500 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $132k (40.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $191k (13.3% below list).
• It's been on market 370 days — a 12% lower offer ($194k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $132k (40.2% 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 $7k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#509 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: cost of living D+, amenities F, commute F.
• Lago Vista ISD (rural): math 33% / reading 51% proficiency, ranked #269 of 826 in TX (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lago Vista El (math 32% / reading 47%, grade F, #1,545 of 4,322 statewide, top 38%, 502 students, 34% FRL); Lago Vista Middle (math 28% / reading 47%, grade F, #736 of 1,662 statewide, top 45%, 433 students, 25% FRL); Lago Vista H S (math 42% / reading 57%, grade D, #509 of 1,632 statewide, top 34%, 636 students, 22% FRL) — zoned schools at 27% FRL track the district average.
• Watch-outs: property tax is 2.9% of price.
• Market conditions: Rents rising (+3.0%/yr); 1388 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% 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.
• 3 sale attempts since 16y ago; this cycle's ask has dropped $30k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: major wind risk, 73% 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 3.6% vs local median 2.4% in Point Venture — 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 370 days. Have you received any prior offers? Is the seller open to a 40% 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.