316 N Hospital St

Rusk, TX 75785

$99,900C+

3 bd · 4.0 ba · 900 sqft · Built 1965 · SingleFamily · Active · 32 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,009/mo
• Mortgage (P&I): −$524
• Tax + insurance: −$129
• HOA: −$0
• Vac / Maint / Mgmt: −$212
• Net cashflow: $144/mo
• Annual: $1,727/yr
• Cap rate: 8.02%
• Cash-on-cash: 6.18%
• DSCR: 1.27
• 1% rule: 1.01%
• Cash to close: $27,972

Investor read

• This is a 3-bed/4.0-bath single-family listed at $100k.
• At list price, monthly cash flow is $144 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $100k).
• It's been on market 32 days — a 3% lower offer ($97k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $97k (3.0% below list) — sets the bar for market timing.
• In year one you build about $10k of equity ($691 loan paydown + $9k appreciation (9.1% local appreciation)).
• Location reads 69/100 on livability (#405 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• Rusk ISD (rural): math 40% / reading 43% proficiency, ranked #380 of 826 in TX (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Rusk El (math 47% / reading 57%, grade C-, #742 of 4,322 statewide, top 19%, 288 students, 74% FRL); Rusk J H (math 40% / reading 41%, grade F, #637 of 1,662 statewide, top 39%, 478 students, 65% FRL); Rusk H S (math 42% / reading 47%, grade F, #652 of 1,632 statewide, top 43%, 610 students, 64% FRL).
• Market conditions: 124 active listings in the ZIP; 39 units permitted in Cherokee County in 2024 (0 in 5+ unit buildings).
• At projected returns (9.1% appreciation + 3.0% rent growth), your $28k cash investment doubles in ~3 years — after that, you're playing with house money.
• 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: major wind risk, 74% 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.
• Cap rate 8.0% vs local median 3.0% in Rusk — 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

• It's been on market 32 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.