603 Boston Ave

Nederland, TX 77627

$60,000B

2 bd · 2.0 ba · 1,300 sqft · Built 2016 · SingleFamily · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,589/mo
• Mortgage (P&I): −$315
• Tax + insurance: −$100
• HOA: −$0
• Vac / Maint / Mgmt: −$334
• Net cashflow: $841/mo
• Annual: $10,089/yr
• Cap rate: 23.11%
• Cash-on-cash: 60.05%
• DSCR: 3.67
• 1% rule: 2.65%
• Cash to close: $16,800

Investor read

• This is a 2-bed/2.0-bath single-family listed at $60k.
• At list price, monthly cash flow is $841 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $60k).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $415 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#129 in TX, #3,906 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Nederland ISD (suburban): math 51% / reading 52% proficiency, ranked #138 of 826 in TX (top 17%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Highland Park El (math 52% / reading 52%, grade C-, #742 of 4,322 statewide, top 19%, 432 students, 54% FRL); Central Middle (math 42% / reading 47%, grade D, #491 of 1,662 statewide, top 31%, 721 students, 55% FRL); Nederland H S (math 49% / reading 61%, grade C, #373 of 1,632 statewide, top 23%, 1,439 students, 47% FRL).
• Market conditions: Rents rising fast (+9.3%/yr); 111 active listings in the ZIP; 14 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 343 units permitted in Jefferson County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $17k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 23.1% vs local median 4.6% in Nederland — 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

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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.