407/405 N Kleas, 202 Bois Darc

Edna, TX 77957

$153,000F

4 bd · 4.0 ba · 588 sqft · Built 2001 · SingleFamily · Active · 14 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,191/mo
• Mortgage (P&I): −$802
• Tax + insurance: −$680
• HOA: −$0
• Vac / Maint / Mgmt: −$250
• Net cashflow: $-542/mo
• Annual: $-6,507/yr
• Cap rate: 5.39%
• Cash-on-cash: -3.24%
• DSCR: 0.86
• 1% rule: 0.78%
• Cash to close: $42,840

Investor read

• This is a 4-bed/4.0-bath single-family listed at $153k.
• At list price, monthly cash flow is $-542 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $57k (62.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $119k (22.2% below list).
• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $57k (62.6% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#254 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Edna ISD (town): math 45% / reading 39% proficiency, ranked #335 of 826 in TX (top 41%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Edna El (math 45% / reading 38%, grade F, #1,437 of 4,322 statewide, top 34%, 222 students, 56% FRL); Edna J H (math 46% / reading 38%, grade D-, #572 of 1,662 statewide, top 36%, 334 students, 60% FRL); Edna H S (math 47% / reading 47%, grade D-, #591 of 1,632 statewide, top 38%, 431 students, 61% FRL) — zoned schools at 59% FRL track the district average.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 75 active listings in the ZIP.
• Jackson County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.4% vs local median 2.8% in Edna — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.