908 Brookside St

Sweetwater, TX 79556

$94,000B-

3 bd · 1.0 ba · 1,207 sqft · Built 1978 · SingleFamily · Pending · 64 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,595/mo
• Mortgage (P&I): −$493
• Tax + insurance: −$677
• HOA: −$0
• Vac / Maint / Mgmt: −$335
• Net cashflow: $90/mo
• Annual: $1,083/yr
• Cap rate: 12.89%
• Cash-on-cash: 23.56%
• DSCR: 2.05
• 1% rule: 1.70%
• Cash to close: $26,320

Investor read

• This is a 3-bed/1.0-bath single-family listed at $94k.
• At list price, monthly cash flow is $90 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $94k).
• It's been on market 64 days — a 6% lower offer ($88k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $88k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $650 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#640 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime D+, amenities F, commute F.
• Sweetwater ISD (town): math 27% / reading 29% proficiency, ranked #681 of 826 in TX (top 82%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: East Ridge El (math 27% / reading 22%, grade F, #3,052 of 4,322 statewide, top 74%, 238 students, 77% FRL) — zoned schools average 77% FRL vs 55% district-wide (22 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 2.7% of price; flood insurance adds $427/mo.
• Market conditions: 108 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 15 units permitted in Nolan County in 2024 (0 in 5+ unit buildings).
• Nolan County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 11y ago; this cycle's ask has dropped $39k (29%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 12.9% vs local median 6.1% in Sweetwater — 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 64 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• 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?