Wondering if a $350,000 single-family home in Collin County can cash flow today? You are not alone. Many small investors and accidental landlords are running the same math while rents, rates, and taxes shift. In this guide, you’ll see realistic scenarios for a typical $350K rental, what levers change your outcome most, and where to verify numbers before you buy or lease. Let’s dive in.
What drives cash flow here
Collin County rentals vary by city, neighborhood, and property condition, but a 3-bedroom single-family often rents somewhere between about $2,000 and $3,500 per month. Use local comps to refine your target, and consider HUD Fair Market Rents as a conservative benchmark to sanity-check your range. You can review regional rent benchmarks on the HUD Fair Market Rents page.
Property taxes matter more here than in many markets. A practical modeling range is roughly 1.8% to 3.0% of assessed value until you confirm the exact combined rate. You can verify assessments with the Collin Central Appraisal District and check current rates and example bills through the Collin County Tax Office on the Collin County website.
Insurance in Texas tends to run higher than the national median due to weather risk. For a single-family in Collin County, many owners model $1,200 to $3,000 per year depending on coverage and carrier. Vacancy is often modeled at 5% to 10% depending on submarket and tenant retention. Property management fees commonly run 8% to 12% of collected rent, plus a leasing or placement fee.
Mortgage rates and terms are a big swing factor. Track current averages with the Freddie Mac Primary Mortgage Market Survey and confirm a precise quote with your lender.
Assumptions for a $350K rental
To keep the math apples-to-apples, the sample scenarios below use these baseline inputs:
- Purchase price: $350,000
- Down payment: 20% ($70,000); loan amount $280,000
- Closing costs and initial reserves: $12,000; total cash invested $82,000
- Vacancy: 5% to 8% depending on scenario
- Taxes: 2.0% to 2.4% of value depending on scenario
- Insurance: $1,500 to $2,500 per year
- Property management: 8% to 10% of effective rent
- Maintenance and capex: $3,500 per year (1% rule)
- Miscellaneous/admin: $600 per year
- 30-year fixed mortgage payment examples on $280,000: about $1,504 at 5.0%, $1,679 at 6.0%, and $1,863 at 7.0% per month
Note: Rents and expense lines should be localized with comps, tax rates, and insurance quotes. Rely on the U.S. Census American Community Survey and Bureau of Labor Statistics Dallas Fort Worth data for current population and employment trends that influence demand.
Three scenarios for Collin County
Scenario A: Conservative
- Gross rent: $2,200 per month; vacancy 8% (effective $24,288 per year)
- Property tax: 2.4% ($8,400 per year)
- Insurance: $2,500 per year; PM fee: 10% of effective rent ($2,429)
- HOA: $50 per month; maintenance: $3,500; misc: $600
- Mortgage: ~7.0% fixed; annual debt service about $22,356
Key results:
- Operating expenses: $18,029
- NOI: $6,259
- Pre-tax cash flow: −$16,097
- Cap rate: 1.8%
- Cash-on-cash: −19.6%
Scenario B: Base case
- Gross rent: $2,700 per month; vacancy 7% (effective $30,132 per year)
- Property tax: 2.2% ($7,700 per year)
- Insurance: $1,800 per year; PM fee: 8% of effective rent ($2,410)
- HOA: $0; maintenance: $3,500; misc: $600
- Mortgage: ~6.0% fixed; annual debt service about $20,148
Key results:
- Operating expenses: $16,010
- NOI: $14,122
- Pre-tax cash flow: −$6,026
- Cap rate: 4.03%
- Cash-on-cash: −7.3%
Scenario C: Optimistic
- Gross rent: $3,300 per month; vacancy 5% (effective $37,620 per year)
- Property tax: 2.0% ($7,000 per year)
- Insurance: $1,500 per year; PM fee: 8% ($3,010)
- HOA: $0; maintenance: $3,500; misc: $600
- Mortgage: ~5.0% fixed; annual debt service about $18,048
Key results:
- Operating expenses: $15,610
- NOI: $22,010
- Pre-tax cash flow: $3,962
- Cap rate: 6.29%
- Cash-on-cash: 4.8%
What the numbers say
The two biggest drivers of your outcome are the rent level and interest rate. With a standard 20% down payment, many $350K single-family purchases will run close to break-even or slightly negative unless your rent sits at the higher end of the local range or you secure a lower rate or higher down payment.
Under the base-case expenses and a 6% loan, the break-even gross rent is roughly $3,240 per month. That aligns with the idea that premium-condition homes and stronger submarkets tend to cash flow first, while average-condition homes may need more equity or value-add improvements to get positive cash flow.
Levers to improve cash flow
- Raise rent through better positioning. Small upgrades, professional photos, and strong marketing can support higher rent, which lifts NOI immediately.
- Improve financing. A lower rate or larger down payment reduces debt service. Compare options with the Freddie Mac PMMS and your lender.
- Reduce vacancy and turnover. Renewal incentives, longer lease terms, and consistent response times help keep good residents.
- Trim operating costs wisely. Shop insurance, choose a right-fit property manager, and plan repairs. Avoid underfunding maintenance.
- Appeal taxes when appropriate. Review your assessment with the Collin Central Appraisal District and follow county procedures if you see a discrepancy.
- Time big capital projects. Schedule roof or HVAC replacements with reserves in mind so one year does not absorb the full hit.
Verify your inputs locally
A strong model starts with property-specific data. Use this quick list to confirm assumptions:
- Pull rent comps for similar beds, baths, age, and location; compare to HUD Fair Market Rents for a conservative baseline.
- Confirm combined tax rate and any special assessments via CCAD and the Collin County Tax Office on the county website.
- Get insurance quotes that specify landlord coverage and wind/hail deductibles.
- Ask property managers about vacancy, fees, and leasing costs for your submarket.
- Get exact P&I from your lender; track market averages through Freddie Mac PMMS.
- For market context on demand, review the U.S. Census American Community Survey and Bureau of Labor Statistics Dallas area data.
Risks to plan for
- Interest-rate risk if you buy or refinance at higher rates.
- Rent softening if new supply comes online or demand slows.
- Unexpected capital expenses like roof, foundation, or major systems.
- Local rule changes that add licensing, inspection, or fee requirements in certain cities.
- Tenant-related risk, including legal costs; consult local counsel for Texas-specific timelines and processes if needed.
Simple step-by-step model
- Gather comps and verify taxes, insurance, HOA, and PM fees.
- Decide who pays which utilities and budget turnover costs.
- Compute Annual Gross Rent, Effective Rent after vacancy, and Operating Expenses.
- Calculate NOI, Debt Service, Pre-tax Cash Flow, Cap Rate, and Cash-on-Cash.
- Run sensitivity tests: rent ±1%, rate ±1%, vacancy between 5% and 10%, and maintenance ±50%.
Final thoughts
A $350K single-family in Collin County can work as a rental, especially if you lean into the levers you control. Your outcome depends most on rent level and financing, followed by vacancy and taxes. Build your model with verified local inputs, keep sensible reserves, and remember that tax items like depreciation affect taxable income differently than cash flow. For details on deductions and depreciation, review IRS Publication 527 on residential rental property.
If you want help finding the right property, pressure-testing your numbers, or leasing a Collin County home, reach out to Clinton Asalu. Let’s connect — get your instant home valuation or start your home search.
FAQs
What is a realistic rent for a $350K 3-bed in Collin County?
- Many 3-bedroom single-family homes land between about $2,000 and $3,500 per month depending on city, condition, and submarket; verify with recent comps and the HUD Fair Market Rents page as a conservative check.
How do Collin County property taxes impact cash flow on $350K?
- Modeling 1.8% to 3.0% of value is common; at 2.2% to 2.4%, taxes may be your single largest expense line after debt service, so confirm rates and assessments with the Collin Central Appraisal District.
How do mortgage rates change cash flow on a $350K rental?
- On a $280,000 loan, monthly P&I is roughly $1,504 at 5%, $1,679 at 6%, and $1,863 at 7%; the rate you lock has a major impact on whether cash flow is negative, break-even, or positive, so monitor the Freddie Mac PMMS.
What is the difference between cap rate and cash-on-cash for Collin County deals?
- Cap rate is NOI divided by price and ignores financing; cash-on-cash measures pre-tax cash flow divided by your cash invested, so it reflects your rate, term, and down payment.
How much should I budget for maintenance on a $350K single-family?
- A simple rule of thumb is about 1% of purchase price per year, or $3,500, plus a separate reserve for long-term items like roof and HVAC; adjust for age and condition after inspections.
Do I need a rental license in Collin County cities like Plano or McKinney?
- Some cities require landlord registration or inspections for rentals; check each city’s municipal code or housing department for current rules and fees before listing your home.
