1008 San Augustine St

Center, TX 75935

$24,990D

3 bd · 2.0 ba · 1,682 sqft · Built 1938 · SingleFamily · Pending · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,062/mo
• Mortgage (P&I): −$131
• Tax + insurance: −$105
• HOA: −$0
• Vac / Maint / Mgmt: −$223
• Net cashflow: $603/mo
• Annual: $7,238/yr
• Cap rate: 35.26%
• Cash-on-cash: 103.44%
• DSCR: 5.60
• 1% rule: 4.25%
• Cash to close: $6,997

Investor read

• This is a 3-bed/2.0-bath single-family listed at $25k.
• At list price, monthly cash flow is $603 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $25k).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $172 of loan paydown is wiped out by about $750 of value loss. Plan a longer hold.
• Location reads 57/100 on livability (#1,271 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: crime F, amenities F, commute F.
• Center ISD (town): math 41% / reading 38% proficiency, ranked #448 of 826 in TX (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 66% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Center El (math 31% / reading 35%, grade F, #2,208 of 4,322 statewide, top 52%, 515 students, 80% FRL); Center Middle (math 53% / reading 38%, grade D+, #470 of 1,662 statewide, top 29%, 533 students, 80% FRL); Center H S (math 30% / reading 46%, grade F, #880 of 1,632 statewide, top 54%, 705 students, 74% FRL).
• Watch-outs: property tax is 4.5% of price; built in 1938 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 105 active listings in the ZIP; 1 units permitted in Shelby County in 2024 (0 in 5+ unit buildings).
• Shelby County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $7k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1938 — 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 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.