697 Fm 179

New Home, TX 79373

$189,000D-

4 bd · 1.0 ba · 2,340 sqft · Built 2020 · SingleFamily · Active · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,190/mo
• Mortgage (P&I): −$991
• Tax + insurance: −$392
• HOA: −$0
• Vac / Maint / Mgmt: −$250
• Net cashflow: $-442/mo
• Annual: $-5,309/yr
• Cap rate: 3.48%
• Cash-on-cash: -10.03%
• DSCR: 0.55
• 1% rule: 0.63%
• Cash to close: $52,920

Investor read

• This is a 4-bed/1.0-bath single-family listed at $189k.
• At list price, monthly cash flow is $-442 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $111k (41.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $119k (37.0% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $111k (41.4% below list) — sets the bar for cash-flow.
• In year one you build about $20k of equity ($1k loan paydown + $18k appreciation (9.7% local appreciation)).
• Location reads 70/100 on livability (#343 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment A-; Watch: health & safety C-, crime D+, amenities F.
• New Home ISD (rural): math 71% / reading 70% proficiency, ranked #16 of 826 in TX (top 2%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Market conditions: 62 active listings in the ZIP.
• Lynn County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 2, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.