Plan 2091 Modeled Plan

Justin, TX 76247

$341,990F

3 bd · 2.0 ba · 2,091 sqft · Built — · SingleFamily · Active · 839 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,727/mo
• Mortgage (P&I): −$2,219
• Tax + insurance: −$705
• HOA: −$0
• Vac / Maint / Mgmt: −$573
• Net cashflow: $-770/mo
• Annual: $-9,235/yr
• Cap rate: 4.11%
• Cash-on-cash: -7.80%
• DSCR: 0.65
• 1% rule: 0.64%
• Cash to close: $118,469

Investor read

• This is a 3-bed/2.0-bath single-family listed at $342k.
• At list price, monthly cash flow is $-770 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $312k (8.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $273k (20.3% below list).
• It's been on market 839 days — a 12% lower offer ($301k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $273k (20.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#443 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Northwest ISD (rural): math 48% / reading 52% proficiency, ranked #120 of 826 in TX (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Justin El (math 40% / reading 44%, grade F, #1,335 of 4,322 statewide, top 33%, 605 students, 24% FRL); Gene Pike Middle (math 47% / reading 46%, grade D+, #443 of 1,662 statewide, top 28%, 1,150 students, 29% FRL); Northwest H S (math 55% / reading 64%, grade C+, #275 of 1,632 statewide, top 19%, 2,264 students, 0% FRL) — zoned schools at 18% FRL track the district average.
• Market conditions: Rents soft (-0.5%/yr); 1516 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 10,531 units permitted in Denton County in 2024 (2,713 in 5+ unit buildings).
• Denton County population projected at +66% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

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 839 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.