320 U.s. 84

Sudan, TX 79371

$155,000D

3 bd · 2.0 ba · 1,913 sqft · Built 1960 · SingleFamily · Active · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,246/mo
• Mortgage (P&I): −$813
• Tax + insurance: −$220
• HOA: −$0
• Vac / Maint / Mgmt: −$262
• Net cashflow: $-48/mo
• Annual: $-579/yr
• Cap rate: 5.92%
• Cash-on-cash: -1.33%
• DSCR: 0.94
• 1% rule: 0.80%
• Cash to close: $43,400

Investor read

• This is a 3-bed/2.0-bath single-family listed at $155k.
• At list price, monthly cash flow is $-48 ($-579/yr) — negative.
• To cash-flow at today's rent, offer at most $146k (5.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $125k (19.6% below list).
• It's been on market 40 days — a 3% lower offer ($150k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $125k (19.6% below list) — sets the bar for 1% rule.
• In year one you build about $2k of equity ($1k loan paydown + $1k appreciation (0.7% local appreciation)).
• Location reads 61/100 on livability (#1,030 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, crime D, amenities F.
• Sudan ISD (rural): math 52% / reading 51% proficiency, ranked #171 of 826 in TX (top 21%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Sudan El (math 47% / reading 47%, grade D-, #1,006 of 4,322 statewide, top 25%, 294 students, 59% FRL); Sudan H S (math 62% / reading 57%, grade C+, #275 of 1,632 statewide, top 19%, 180 students, 44% FRL) — zoned schools at 52% FRL track the district average.
• Market conditions: 3 active listings in the ZIP.
• Lamb County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: moderate wildfire risk — 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 40 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• Built in 1960 — 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.
• 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.