7150 Lake Tahoe

Brownsville, TX 78520

$319,000D

4 bd · 3.5 ba · 1,902 sqft · Built 2026 · SingleFamily · Pending · 29 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,663/mo
• Mortgage (P&I): −$1,636
• Tax + insurance: −$520
• HOA: −$0
• Vac / Maint / Mgmt: −$559
• Net cashflow: $-52/mo
• Annual: $-621/yr
• Cap rate: 6.09%
• Cash-on-cash: -0.71%
• DSCR: 0.97
• 1% rule: 0.85%
• Cash to close: $87,340

Investor read

• This is a 4-bed/3.5-bath single-family listed at $319k. Condition is rated excellent.
• At list price, monthly cash flow is $-52 ($-621/yr) — negative.
• To cash-flow at today's rent, offer at most $304k (4.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $266k (16.5% below list).
• It's been on market 29 days — a 2% lower offer ($314k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $266k (16.5% 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 $9k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#62 in TX, #2,311 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: amenities D, crime D-, employment F.
• Los Fresnos CISD (suburban): math 34% / reading 44% proficiency, ranked #444 of 826 in TX (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Los Fresnos El (math 37% / reading 47%, grade F, #1,335 of 4,322 statewide, top 33%, 561 students, 76% FRL); Resaca Middle (math 29% / reading 44%, grade F, #786 of 1,662 statewide, top 48%, 857 students, 77% FRL); Los Fresnos H S (math 41% / reading 55%, grade D, #571 of 1,632 statewide, top 36%, 3,272 students, 82% FRL) — zoned schools average 78% FRL vs 43% district-wide (35 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+11.4%/yr); 348 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 2,326 units permitted in Cameron County in 2024 (503 in 5+ unit buildings).
• Cameron County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 6.1% vs local median 5.0% in Brownsville — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• At $2,663/mo this rent would consume 64% of the median local household income ($50k/yr) (locally 1800% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is D 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?
• 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.