705 4th St

Queen City, TX 75572

$84,000B-

2 bd · 1.0 ba · 816 sqft · Built 1965 · SingleFamily · Active · 41 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $900/mo
• Mortgage (P&I): −$441
• Tax + insurance: −$140
• HOA: −$0
• Vac / Maint / Mgmt: −$189
• Net cashflow: $130/mo
• Annual: $1,566/yr
• Cap rate: 8.16%
• Cash-on-cash: 6.66%
• DSCR: 1.30
• 1% rule: 1.07%
• Cash to close: $23,520

Investor read

• This is a 2-bed/1.0-bath single-family listed at $84k. Condition is rated good.
• At list price, monthly cash flow is $130 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($900 rent vs $84k).
• It's been on market 41 days — a 3% lower offer ($81k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $81k (3.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($581 loan paydown + $3k appreciation (3.7% local appreciation)).
• Location reads 64/100 on livability (#735 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Queen City ISD (rural): math 39% / reading 45% proficiency, ranked #355 of 826 in TX (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: J K Hileman El (math 42% / reading 47%, grade F, #1,155 of 4,322 statewide, top 29%, 384 students, 76% FRL); Morris Upchurch Middle (math 35% / reading 42%, grade F, #704 of 1,662 statewide, top 43%, 274 students, 61% FRL); Queen City H S (math 47% / reading 47%, grade D-, #591 of 1,632 statewide, top 38%, 296 students, 53% FRL).
• Market conditions: 65 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 12 units permitted in Cass County in 2024 (0 in 5+ unit buildings).
• Cass County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (3.7% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% 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.

Questions for listing agent

• It's been on market 41 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1965 — 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.
• 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?
• 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.