203 W 12th Ave

Spearman, TX 79081

$90,900B-

3 bd · 1.0 ba · 1,269 sqft · Built 1960 · SingleFamily · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,157/mo
• Mortgage (P&I): −$477
• Tax + insurance: −$176
• HOA: −$0
• Vac / Maint / Mgmt: −$243
• Net cashflow: $261/mo
• Annual: $3,137/yr
• Cap rate: 9.74%
• Cash-on-cash: 12.33%
• DSCR: 1.55
• 1% rule: 1.27%
• Cash to close: $25,452

Investor read

• This is a 3-bed/1.0-bath single-family listed at $91k.
• At list price, monthly cash flow is $261 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $91k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $628 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#335 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Spearman ISD (town): math 62% / reading 57% proficiency, ranked #80 of 826 in TX (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Spearman J H (math 72% / reading 62%, grade A-, #84 of 1,662 statewide, top 5%, 163 students, 64% FRL); Spearman H S (math 67% / reading 67%, grade B, #163 of 1,632 statewide, top 11%, 223 students, 53% FRL) — zoned schools at 59% FRL track the district average.
• Market conditions: 20 active listings in the ZIP.
• Hansford County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~10 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• 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.
• 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.