109 5th St SE

Fabens, TX 79838

$200,000B+

None bd · None ba · 3,796 sqft · Built 2002 · MultiFamily · Active · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,584/mo
• Mortgage (P&I): −$1,049
• Tax + insurance: −$399
• HOA: −$0
• Vac / Maint / Mgmt: −$753
• Net cashflow: $1,384/mo
• Annual: $16,606/yr
• Cap rate: 14.60%
• Cash-on-cash: 29.65%
• DSCR: 2.32
• 1% rule: 1.79%
• Cash to close: $56,000

Investor read

• This is a 4 × 2-bed/1-bath units multifamily listed at $200k.
• At list price, monthly cash flow is $1k ($17k/yr) — positive. Per door: $346/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $200k).
• It's been on market 28 days — a 2% lower offer ($197k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $197k (1.5% below list) — sets the bar for market timing.
• In year one you build about $21k of equity ($1k loan paydown + $20k appreciation (9.9% local appreciation)).
• Location reads 54/100 on livability (#1,383 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A; Watch: crime D+, amenities F, commute F.
• Fabens ISD (town): math 13% / reading 21% proficiency, ranked #809 of 826 in TX (top 98%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Fabens El (math 22% / reading 22%, grade F, #3,333 of 4,322 statewide, top 80%, 623 students, 94% FRL); Fabens Middle (math 10% / reading 19%, grade F, #1,583 of 1,662 statewide, top 96%, 432 students, 94% FRL); Fabens H S (math 12% / reading 25%, grade F, #1,436 of 1,632 statewide, top 88%, 623 students, 89% FRL) — zoned schools average 92% FRL vs 49% district-wide (43 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 28 active listings in the ZIP; 2,196 units permitted in El Paso County in 2024 (143 in 5+ unit buildings).
• El Paso County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (9.9% appreciation + 3.0% rent growth), your $56k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→25/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.