1117 E Brazos

Pearsall, TX 78061

$179,000D

4 bd · 2.0 ba · 2,204 sqft · Built 1963 · SingleFamily · Active · 101 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,493/mo
• Mortgage (P&I): −$939
• Tax + insurance: −$526
• HOA: −$0
• Vac / Maint / Mgmt: −$314
• Net cashflow: $-285/mo
• Annual: $-3,423/yr
• Cap rate: 4.38%
• Cash-on-cash: -6.83%
• DSCR: 0.70
• 1% rule: 0.83%
• Cash to close: $50,120

Investor read

• This is a 4-bed/2.0-bath single-family listed at $179k.
• At list price, monthly cash flow is $-285 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $129k (28.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $149k (16.6% below list).
• It's been on market 101 days — a 9% lower offer ($163k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $129k (28.2% below list) — sets the bar for cash-flow.
• In year one you build about $10k of equity ($1k loan paydown + $9k appreciation (4.9% local appreciation)).
• Location reads 70/100 on livability (#374 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B+; Watch: employment C-, amenities F, commute F.
• Pearsall ISD (town): math 12% / reading 19% proficiency, ranked #810 of 826 in TX (top 98%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 76% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Ted Flores El (520 students, 91% FRL); Pearsall J H (math 9% / reading 17%, grade F, #1,609 of 1,662 statewide, top 97%, 457 students, 80% FRL); Pearsall H S (math 17% / reading 28%, grade F, #1,354 of 1,632 statewide, top 83%, 614 students, 86% FRL).
• Watch-outs: property tax is 3.0% of price.
• Market conditions: 45 active listings in the ZIP; 12 units permitted in Frio County in 2024 (0 in 5+ unit buildings).
• Frio County population projected at +50% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 8 sale attempts since 10y ago; this cycle's ask has dropped $46k (20%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 4, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 101 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• Built in 1963 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?