2366 Beckendorff

Sealy, TX 77474

$112,000B-

3 bd · 2.0 ba · 1,677 sqft · Built 1984 · SingleFamily · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,637/mo
• Mortgage (P&I): −$587
• Tax + insurance: −$187
• HOA: −$0
• Vac / Maint / Mgmt: −$344
• Net cashflow: $520/mo
• Annual: $6,235/yr
• Cap rate: 11.86%
• Cash-on-cash: 19.88%
• DSCR: 1.88
• 1% rule: 1.46%
• Cash to close: $31,360

Investor read

• This is a 3-bed/2.0-bath single-family listed at $112k. Condition is rated poor.
• At list price, monthly cash flow is $520 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $112k).
• It's been on market 16 days — a 2% lower offer ($110k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $110k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $774 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#342 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: schools D, amenities F, commute F.
• Sealy ISD (rural): math 39% / reading 39% proficiency, ranked #405 of 826 in TX (top 49%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 310 active listings in the ZIP; 410 units permitted in Austin County in 2024 (0 in 5+ unit buildings).
• Austin County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $31k cash investment doubles in ~7 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.9% vs local median 2.6% in Sealy — 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

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Repairs flagged (vision-AI assessment)

• Major: Kitchen cabinets — Old and worn
• Major: Kitchen countertops — Exposed subfloor
• Major: Bathroom fixtures — Worn and peeling
• Major: Exterior siding — Exposed subfloor
• Major: Flooring — Worn tile
• Major: Paint — Peeling