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100 E Hibiscus St, South Padre Island, TX 78597, USA
Priced too high to cash-flow with a loan — an equity or tax play, not income.
Investment potential
Your scenario · adjust the levers below or open advanced settings to see how returns change
$47,206
$3,934/mo · at 53% occupancy & $270/night
-$5,319
-$443/mo after costs & mortgage
Cap rate
4.9%
Cash-on-cash
-3.5%
DSCR
0.82
Confidence
Your assumptions
Revenue
$47,206/yr
Market avg: $47,206/yr · 53% occ · $270 ADR
Financing
$29,939/yr
Operating costs
$22,587/yr
How this property compares to similar short-term rentals nearby.
Comparable set · 50 properties
$170–$433
Median $270
25%–84%
Median 53%
$28.4K–$101.8K
Median $43.5K
217–365
Median 309
This property · $47.2K
Comparable properties (50)
Cash flow potential Low · Appreciation potential Medium
365 days available · 249 days booked ·
365 days available · 266 days booked ·
348 days available · 263 days booked ·
365 days available · 265 days booked ·
365 days available · 249 days booked ·
365 days available · 255 days booked ·
323 days available · 254 days booked ·
365 days available · 168 days booked ·
326 days available · 221 days booked ·
365 days available · 200 days booked ·
305 days available · 155 days booked ·
308 days available · 241 days booked ·
300 days available · 150 days booked ·
322 days available · 180 days booked ·
236 days available · 145 days booked ·
351 days available · 125 days booked ·
306 days available · 174 days booked ·
250 days available · 103 days booked ·
310 days available · 204 days booked ·
234 days available · 123 days booked ·
328 days available · 172 days booked ·
340 days available · 170 days booked ·
310 days available · 144 days booked ·
358 days available · 118 days booked ·
346 days available · 193 days booked ·
291 days available · 218 days booked ·
265 days available · 134 days booked ·
252 days available · 172 days booked ·
276 days available · 170 days booked ·
313 days available · 163 days booked ·
231 days available · 85 days booked ·
365 days available · 174 days booked ·
296 days available · 169 days booked ·
270 days available · 123 days booked ·
233 days available · 134 days booked ·
263 days available · 111 days booked ·
323 days available · 116 days booked ·
265 days available · 149 days booked ·
245 days available · 197 days booked ·
260 days available · 145 days booked ·
271 days available · 82 days booked ·
260 days available · 146 days booked ·
325 days available · 124 days booked ·
306 days available · 110 days booked ·
335 days available · 151 days booked ·
240 days available · 140 days booked ·
361 days available · 136 days booked ·
217 days available · 169 days booked ·
341 days available · 101 days booked ·
294 days available · 118 days booked ·
Revenue and occupancy reflect Chalet's modeled estimates from observed booking activity for comparable active listings. Individual results vary with management, seasonality, and pricing.
Who this property is for
The same property is a great buy for one investor and a trap for another. Here's the honest read.
1031 / high-equity buyer
~$123.5K
Year-1 tax shield
Buying with cash or low leverage removes the debt-coverage problem entirely, so the thesis rests on appreciation plus a large first-year write-off. At roughly 25% of purchase price, the shield is substantial enough to carry the deal on its own.
Price-disciplined buyer
$411.2K
Break-even purchase price
The deal pencils only if you buy right. At ~18% below the Zestimate the numbers reach break-even — treat that as a negotiation anchor, not a fantasy. Pay asking and the math stops working.
DSCR cash-flow buyer
0.82
DSCR at asking
At asking price the property doesn't cover its own debt service, so it won't qualify for DSCR financing as modeled. If you need cash flow from day one, look at a mid-term-rental fallback or a different South Padre Island submarket.
For a buyer who materially participates and qualifies for the STR tax treatment.
$123.5K
Estimated first-year deduction · range $102.5K–$140.8K
Why this matters here
At a marginal bracket, this deduction can be worth $37.9K–$52.1K in estimated federal tax saved.
This only applies if you meet the IRS material-participation tests for short-term rentals and are not using a full-service property manager.
Estimate, subject to CPA review. Cost-segregation percentages shown here are illustrative and depend on an actual study of the property.
Some states do not conform to federal bonus depreciation, so your state may not allow the same first-year treatment shown above.
Chalet can introduce a cost-segregation partner — this is not tax, legal, or financial advice.
How cash-on-cash return moves with purchase price. The marked line is break-even (1.0 DSCR).
At this price: cash-on-cash -3.5%, DSCR 0.82, cash flow -$5,319/yr
| Price vs asking | Price | Cash-on-cash | DSCR | Band |
|---|---|---|---|---|
| -25% | $375,000 | 1.8% | 1.10 | Positive |
| -22% | $390,000 | 1.0% | 1.05 | Positive |
| -15% | $425,000 | -0.6% | 0.97 | Below break-even |
| -8% | $460,000 | -2.1% | 0.89 | Below break-even |
| Asking | $500,000 | -3.5% | 0.82 | Below break-even |
| +8% | $540,000 | -4.8% | 0.76 | Below break-even |
| +15% | $575,000 | -5.8% | 0.72 | Below break-even |
Break-even price
$411,162
~18% under Zestimate. Where this property reaches 1.0 DSCR and neutral cash flow.
Discount needed
−$88,838
The gap between asking and the price a cash-flow buyer can underwrite.
If refi to 5.5% in 24 mo
+$4,388/yr
Illustrative cash-flow improvement at asking price if rates fall. Planning figure, not a forecast.
Annual avg $3,934 · peaks at $5,413 in Jul
Annual avg 56% · peaks at 74% in Jul
−$443/mo after all expenses
Cash to close
Down payment, closing costs, and furnishing
$145,000
Return on cash:13.6%
DSCR below 1.0 — but you can still qualify
Your DSCR is 0.82 · lenders typically require 1.0+.
Get matched with 2–3 vetted STR lenders, free.
What the deal returns over the hold — including the tax shield, which is the whole point for an appreciation buyer.
Levered IRR
15.7%
over 5-yr hold, with tax shield
Equity multiple
1.9×
total proceeds vs. $145,000 invested
Projected value at exit
$638,141
year 5 · 5.0% annual appreciation
Tax shield contribution
+6.7 pts
of IRR comes from year-1 depreciation
| Year | Equity | Appreciation | Cumulative cash flow | Total value |
|---|---|---|---|---|
| Year 1 | $128,809 | $25,000 | $40,376 | $194,185 |
| Year 2 | $132,894 | $51,250 | $35,765 | $219,909 |
| Year 3 | $137,274 | $78,813 | $31,873 | $247,959 |
| Year 4 | $141,970 | $107,753 | $28,710 | $278,434 |
| Year 5 | $147,007 | $138,141 | $26,288 | $311,435 |
Projection, not a promise.
Assumes 5.0% annual appreciation, 1.5% rent growth (operating costs held flat), and that the property qualifies for short-term-rental tax treatment. The year-1 depreciation shield depends on a real cost-segregation study and your tax situation — consult a CPA.
Appreciation is the dominant driver of this return. When cash flow is negative, the deal depends on the property gaining value — it is not paying for itself from income.
Appreciation, rent growth, and financing rates are editable under Edit financials.
STR deals turn on local rules and demand that a generalist agent misses. Chalet matches you with a vetted South Padre Island agent who knows which properties actually cash flow — and which to avoid.
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Real Estate Investment Analysis & Market Insights
Disclaimer. This page and the data presented are for informational purposes only. The information provided should not be construed as financial, legal, or investment advice. Market conditions can change rapidly, and past performance does not guarantee future results. Always consult with qualified professionals before making investment decisions.
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