1311 W Main St

Gatesville, TX 76528

$197,500D

4 bd · 2.0 ba · 1,508 sqft · Built 1971 · SingleFamily · Active · 234 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,686/mo
• Mortgage (P&I): −$1,036
• Tax + insurance: −$368
• HOA: −$0
• Vac / Maint / Mgmt: −$354
• Net cashflow: $-72/mo
• Annual: $-864/yr
• Cap rate: 5.86%
• Cash-on-cash: -1.56%
• DSCR: 0.93
• 1% rule: 0.85%
• Cash to close: $55,300

Investor read

• This is a 4-bed/2.0-bath single-family listed at $198k.
• At list price, monthly cash flow is $-72 ($-864/yr) — negative.
• To cash-flow at today's rent, offer at most $185k (6.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $169k (14.7% below list).
• It's been on market 234 days — a 12% lower offer ($174k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $169k (14.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#702 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: employment C-, amenities F, commute F.
• Gatesville ISD (town): math 38% / reading 42% proficiency, ranked #409 of 826 in TX (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Gatesville El (math 42% / reading 47%, grade F, #1,155 of 4,322 statewide, top 29%, 611 students, 57% FRL); Gatesville Int (math 43% / reading 39%, grade F, #613 of 1,662 statewide, top 38%, 585 students, 58% FRL); Gatesville H S (math 27% / reading 40%, grade F, #1,011 of 1,632 statewide, top 63%, 795 students, 45% FRL).
• Market conditions: 224 active listings in the ZIP; 386 units permitted in Coryell County in 2024 (0 in 5+ unit buildings).
• 11 sale attempts since 15y ago; this cycle's ask is 9775% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Climate carrying-cost: major wind risk, 46% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.9% vs local median 3.6% in Gatesville — 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

• 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 234 days. Have you received any prior offers? Is the seller open to a 15% concession, seller financing, or rate buy-down credit?
• Built in 1971 — 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?
• 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.