Gerson Plan

Geronimo, TX 78155

$199,999D-

3 bd · 2.0 ba · 1,354 sqft · Built — · SingleFamily · Active · 314 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,676/mo
• Mortgage (P&I): −$1,156
• Tax + insurance: −$367
• HOA: −$0
• Vac / Maint / Mgmt: −$352
• Net cashflow: $-199/mo
• Annual: $-2,389/yr
• Cap rate: 5.21%
• Cash-on-cash: -3.87%
• DSCR: 0.83
• 1% rule: 0.76%
• Cash to close: $61,709

Investor read

• This is a 3-bed/2.0-bath single-family listed at $200k. Condition is rated good.
• At list price, monthly cash flow is $-199 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $192k (4.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $168k (16.2% below list).
• It's been on market 314 days — a 12% lower offer ($176k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $168k (16.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 51/100 on livability (#1,471 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+, crime A; Watch: amenities F, commute F, employment F.
• Navarro ISD (rural): math 48% / reading 50% proficiency, ranked #166 of 826 in TX (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Navarro El (math 37% / reading 57%, grade D-, #1,006 of 4,322 statewide, top 25%, 702 students, 45% FRL); Navarro Int (math 50% / reading 44%, grade D+, #424 of 1,662 statewide, top 27%, 485 students, 40% FRL); Navarro H S (math 47% / reading 57%, grade D+, #447 of 1,632 statewide, top 29%, 648 students, 33% FRL) — zoned schools at 39% FRL track the district average.
• Market conditions: Rents rising (+2.0%/yr); 1833 active listings in the ZIP; 33 comparable units currently listed for rent nearby; rentals leasing fast (median 4d on market — plan ~1-2 weeks tenant-placement turnaround); 2,064 units permitted in Guadalupe County in 2024 (133 in 5+ unit buildings).
• Guadalupe County population projected at +61% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→22/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 314 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• 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?
• 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.