Four investment properties in Houston, TX analyzed for purchase as rental investments. All properties are active listings scheduled for tour.
| Metric | 5841 Darling #C | 1310 Country Pl | 1319 East St | 12222 Gladewick |
|---|---|---|---|---|
| Rank | #1 Best | #2 Strong | #3 Good | #4 Good |
| Asking Price | $375,000 | $279,000 | $399,500 | $360,000 |
| Type | TH/Rowhouse | TH/Condo | SFR | SFR |
| Sq Ft | 2,091 | 2,024 | 1,905 | 2,415 |
| Year Built | 2007 | 1976 | 2008 | 1981 |
| Price/SqFt | $179.34 | $137.85 | $209.71 | $149.07 |
| Est. Monthly Rent | $3,438 | $2,637 | $3,422 | $3,106 |
| Mortgage Payment | $1,996 | $1,485 | $2,126 | $1,916 |
| Other Monthly Expenses (Tax + Insurance + HOA) |
$745 | $616 | $784 | $797 |
| HOA/Maint Fee (Annual) | $0 | $445/yr ($37/mo) | $0 | $909/yr ($76/mo) |
| Monthly Cash Flow (Rent - Mortgage - Other Expenses) |
+$697 | +$536 | +$512 | +$393 |
| Cap Rate | 8.62% | 8.69% | 7.92% | 7.70% |
| Cash-on-Cash | +9.69% | +10.03% | +6.68% | +5.70% |
| GRM | 9.09 | 8.82 | 9.73 | 9.66 |
| Capital Required (20%+3%) | $86,250 | $64,170 | $91,885 | $82,800 |
| Price vs Comps | -8% below | +6% above | -6% below | -16% below |
| Term | Definition | Recommended Range |
|---|---|---|
| Cap Rate | Capitalization Rate — measures annual return on property value independent of financing. Higher = better investment yield. | 5%–10% for residential investment. Above 8% = strong. Below 4% = weak cash flow. |
| Cash-on-Cash Return | Annual cash flow as a percentage of total cash invested (down payment + closing costs). Measures return on YOUR money. | 8%–12% ideal. Above 0% = positive return. Negative = losing money annually on cash invested. |
| GRM | Gross Rent Multiplier — purchase price divided by annual gross rent. Lower = faster payback period. | 4–8 is strong. 8–12 is typical. Above 15 = overpriced relative to rent. |
| NOI | Net Operating Income — gross rent minus fixed operating expenses (taxes, insurance, HOA). Excludes mortgage. | Must be positive. Higher NOI = more room to service debt and profit. |
| Monthly Cash Flow | What remains after all expenses INCLUDING mortgage payment. Positive = money in pocket each month. | +$100–$300/door minimum. $0 = break-even. Negative = subsidizing the property monthly. |
| Price/SqFt | Asking price divided by building square footage. Used to compare value across different-sized properties. | Compare to area comps. Below area median = potential value. Above = premium pricing. |
| Price vs Comps | How the asking price compares to recently sold comparable properties. Negative = below market (potential deal). | -5% to -15% below comps = sweet spot for negotiation. Above comps = overpaying. |
| Capital Required | Total cash needed to close — down payment (20%) plus estimated closing costs (3%). | Keep under 25% of liquid reserves per property for safety margin. |
| DOM / CDOM | Days on Market (current listing) / Cumulative Days on Market (includes prior listings). Higher CDOM = more negotiation leverage. | 30–90 days typical. Under 30 = hot (less leverage). Over 90 = motivated seller. 150+ CDOM = significant price reduction opportunity. |
| Metric | Formula |
|---|---|
| Cap Rate | NOI / Purchase Price x 100 |
| NOI | Annual Gross Rent - Property Tax - Insurance ($1,800/yr) - HOA/Maint Fee |
| Monthly Cash Flow | Monthly Rent - Mortgage Payment - (Property Tax / 12) - Insurance ($150/mo) - (HOA / 12) |
| Cash-on-Cash | (Annual Cash Flow) / (Down Payment + Closing Costs) x 100 |
| GRM | Purchase Price / Annual Gross Rent |
| Mortgage Payment | Standard amortization: 80% of price at 7.0% over 30 years |
| Capital Required | Purchase Price x 20% (down) + Purchase Price x 3% (closing costs) |
If buying one: Darling is the clear winner — highest cash flow (+$697/mo), no HOA, Inner Loop appreciation, below-comp pricing.
If buying two: Darling (#1) + Country Place (#2) creates a diversified portfolio — Inner Loop appreciation plus Memorial West value play, total capital ~$150K, combined cash flow +$1,233/mo.
All four properties cash-flow positive. Gladewick has lowest cash flow (+$393/mo) due to $909/yr HOA.
| Assumption | Value |
|---|---|
| Down Payment | 20% |
| Loan Term | 30 years fixed |
| Interest Rate | 7.0% |
| Closing Costs (est.) | 3% of purchase price |
| Property Tax Rate | Per HCAD/county assessor |
| Insurance (est.) | $150/month |
| Vacancy | Variable (not included in calculations) |
| Maintenance | Unknown (not included — varies by property condition) |
| Property Management | Self-managed |
| Rental Estimates | CoreLogic RentRange + HAR lease comps |
| HOA/Maint Fees | From MLS Client Full listing data (annual) |
Analysis prepared from HAR MLS CMA data and Client Full listing documents. Rental estimates should be confirmed with local property management companies.