514 County Road 1475

Mount Pleasant, TX 75455

$179,900F

4 bd · 3.0 ba · 1,184 sqft · Built 1966 · Manufactured · Pending · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,286/mo
• Mortgage (P&I): −$943
• Tax + insurance: −$366
• HOA: −$0
• Vac / Maint / Mgmt: −$270
• Net cashflow: $-294/mo
• Annual: $-3,526/yr
• Cap rate: 4.78%
• Cash-on-cash: -5.42%
• DSCR: 0.76
• 1% rule: 0.71%
• Cash to close: $50,372

Investor read

• This is a 4-bed/3.0-bath manufactured listed at $180k.
• At list price, monthly cash flow is $-294 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $137k (23.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $129k (28.5% below list).
• It's been on market 17 days — a 2% lower offer ($177k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $129k (28.5% 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 $5k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#81 in TX, #2,808 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment C-, amenities D-, commute F.
• Mount Pleasant ISD (town): math 45% / reading 44% proficiency, ranked #291 of 826 in TX (top 35%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 74% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Child Development Center (452 students, 91% FRL); Mount Pleasant J H (math 40% / reading 45%, grade D-, #553 of 1,662 statewide, top 34%, 760 students, 81% FRL); Mount Pleasant H S (math 68% / reading 54%, grade C+, #258 of 1,632 statewide, top 16%, 1,521 students, 79% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 384 active listings in the ZIP; 47 units permitted in Titus County in 2024 (10 in 5+ unit buildings).
• Climate carrying-cost: major flood risk; major wind risk, 27% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.8% vs local median 3.1% in Mount Pleasant — 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?
• Built in 1966 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?
• What's the documented flood / surge / shoreline-erosion history here (FEMA AND non-FEMA — e.g., storm surge, creek backup, septic-field saturation)?