516 W 2nd St #406

Coleman, TX 76834

$45,000B+

2 bd · 1.0 ba · 1,360 sqft · Built 1960 · SingleFamily · Active · 155 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $992/mo
• Mortgage (P&I): −$236
• Tax + insurance: −$108
• HOA: −$0
• Vac / Maint / Mgmt: −$208
• Net cashflow: $440/mo
• Annual: $5,285/yr
• Cap rate: 18.04%
• Cash-on-cash: 41.95%
• DSCR: 2.87
• 1% rule: 2.21%
• Cash to close: $12,600

Investor read

• This is a 2-bed/1.0-bath single-family listed at $45k.
• At list price, monthly cash flow is $440 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($992 rent vs $45k).
• It's been on market 155 days — a 12% lower offer ($40k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $40k (12.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($311 loan paydown + $3k appreciation (5.7% local appreciation)).
• Location reads 68/100 on livability (#454 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety D+, amenities F, commute F.
• Coleman ISD (town): math 42% / reading 39% proficiency, ranked #439 of 826 in TX (top 53%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Coleman El (math 32% / reading 27%, grade F, #2,525 of 4,322 statewide, top 62%, 339 students, 69% FRL); Coleman J H (math 47% / reading 45%, grade D+, #462 of 1,662 statewide, top 28%, 252 students, 56% FRL); Coleman H S (math 44% / reading 42%, grade F, #708 of 1,632 statewide, top 44%, 203 students, 42% FRL) — zoned schools at 56% FRL track the district average.
• Market conditions: 120 active listings in the ZIP; 5 units permitted in Coleman County in 2024 (0 in 5+ unit buildings).
• Coleman County population projected at -28% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 7 sale attempts since 6y ago; this cycle's ask is 8900% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• At projected returns (5.7% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 18.0% vs local median 4.5% in Coleman — 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 155 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.