121 Whispering Pnes

Winnsboro, TX 75480

$395,000C

2 bd · 2.0 ba · 2,000 sqft · Built 2023 · SingleFamily · Active · 919 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,450/mo
• Mortgage (P&I): −$2,071
• Tax + insurance: −$658
• HOA: −$0
• Vac / Maint / Mgmt: −$724
• Net cashflow: $-4/mo
• Annual: $-51/yr
• Cap rate: 6.28%
• Cash-on-cash: -0.05%
• DSCR: 1.00
• 1% rule: 0.87%
• Cash to close: $110,600

Investor read

• This is a 2-bed/2.0-bath single-family listed at $395k. Condition is rated excellent.
• At list price, monthly cash flow is $-4 ($-51/yr) — negative.
• To cash-flow at today's rent, offer at most $394k (0.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $345k (12.7% below list).
• It's been on market 919 days — a 12% lower offer ($348k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $345k (12.7% below list) — sets the bar for 1% rule.
• In year one you build about $23k of equity ($3k loan paydown + $20k appreciation (5.1% local appreciation)).
• Location reads 69/100 on livability (#416 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: employment D+, amenities F, commute F.
• Mount Vernon ISD (town): math 49% / reading 43% proficiency, ranked #251 of 826 in TX (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 96 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 7 units permitted in Franklin County in 2024 (0 in 5+ unit buildings).
• At projected returns (5.1% appreciation + 3.0% rent growth), your $111k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 6.3% vs local median 3.8% in Winnsboro — 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 919 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• 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.
• 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.