The Oriole II Plan

Needville, TX 77461

$274,990D-

3 bd · 2.5 ba · 2,061 sqft · Built — · SingleFamily · Active · 112 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,200/mo
• Mortgage (P&I): −$1,477
• Tax + insurance: −$469
• HOA: −$0
• Vac / Maint / Mgmt: −$462
• Net cashflow: $-208/mo
• Annual: $-2,500/yr
• Cap rate: 5.41%
• Cash-on-cash: -3.17%
• DSCR: 0.86
• 1% rule: 0.78%
• Cash to close: $78,858

Investor read

• This is a 3-bed/2.5-bath single-family listed at $275k. Condition is rated excellent.
• At list price, monthly cash flow is $-208 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $251k (8.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $220k (20.0% below list).
• It's been on market 112 days — a 9% lower offer ($250k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $220k (20.0% 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 $8k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#137 in TX, #3,992 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Needville ISD (rural): math 55% / reading 55% proficiency, ranked #95 of 826 in TX (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Needville El (math 58% / reading 53%, grade C, #587 of 4,322 statewide, top 14%, 1,129 students, 49% FRL); Needville Middle (math 56% / reading 56%, grade B-, #234 of 1,662 statewide, top 14%, 819 students, 45% FRL); Needville H S (math 50% / reading 56%, grade C-, #437 of 1,632 statewide, top 27%, 1,067 students, 41% FRL).
• Market conditions: 516 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 12,093 units permitted in Fort Bend County in 2024 (815 in 5+ unit buildings).
• Fort Bend County population projected at +75% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 5.4% vs local median 4.3% in Needville — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 112 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.
• 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.
• 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.