626 Fetick Ave

Taft, TX 78390

$85,000D

3 bd · None ba · 2,868 sqft · Built 1942 · SingleFamily · Active · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $795/mo
• Mortgage (P&I): −$446
• Tax + insurance: −$216
• HOA: −$0
• Vac / Maint / Mgmt: −$167
• Net cashflow: $-34/mo
• Annual: $-406/yr
• Cap rate: 5.82%
• Cash-on-cash: -1.70%
• DSCR: 0.92
• 1% rule: 0.94%
• Cash to close: $23,800

Investor read

• This is a 3-bed/?-bath single-family listed at $85k.
• At list price, monthly cash flow is $-34 ($-406/yr) — negative.
• To cash-flow at today's rent, offer at most $79k (7.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $80k (6.5% below list).
• It's been on market 24 days — a 2% lower offer ($84k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $79k (7.0% below list) — sets the bar for cash-flow.
• In year one you build about $4k of equity ($588 loan paydown + $4k appreciation (4.4% local appreciation)).
• Location reads 65/100 on livability (#673 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Taft ISD (town): math 24% / reading 24% proficiency, ranked #727 of 826 in TX (top 88%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 77% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Woodroe Petty El (math 18% / reading 22%, grade F, #3,536 of 4,322 statewide, top 83%, 381 students, 92% FRL); Ricardo L Trevino J H (math 28% / reading 26%, grade F, #1,177 of 1,662 statewide, top 72%, 199 students, 90% FRL); Taft H S (math 27% / reading 27%, grade F, #1,204 of 1,632 statewide, top 75%, 242 students, 80% FRL).
• Watch-outs: property tax is 2.6% of price; built in 1942 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 61 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 344 units permitted in San Patricio County in 2024 (0 in 5+ unit buildings).
• San Patricio County population projected at +27% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (4.4% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→25/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?
• Built in 1942 — 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?
• 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?
• 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.