111 S 7th Ave

Munday, TX 76371

$25,000D+

6 bd · 2.0 ba · 1,020 sqft · Built 1950 · SingleFamily · Pending · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,104/mo
• Mortgage (P&I): −$131
• Tax + insurance: −$94
• HOA: −$0
• Vac / Maint / Mgmt: −$232
• Net cashflow: $648/mo
• Annual: $7,771/yr
• Cap rate: 37.38%
• Cash-on-cash: 111.02%
• DSCR: 5.94
• 1% rule: 4.42%
• Cash to close: $7,000

Investor read

• This is a 6-bed/2.0-bath single-family listed at $25k.
• At list price, monthly cash flow is $648 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $25k).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $428 of equity ($173 loan paydown + $255 appreciation (1.0% local appreciation)).
• Location reads 66/100 on livability (#626 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A-, housing B+; Watch: health & safety C-, amenities F, commute F.
• Munday CISD (rural): math 43% / reading 44% proficiency, ranked #326 of 826 in TX (top 40%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Munday El (math 57% / reading 52%, grade C, #621 of 4,322 statewide, top 15%, 216 students, 58% FRL) — zoned schools at 58% FRL track the district average.
• Watch-outs: property tax is 4.0% of price; built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 18 active listings in the ZIP.
• Knox County population projected at +21% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (1.0% appreciation + 3.0% rent growth), your $7k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-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.
• 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.