415 S Cherry St

Town of Pecos, TX 79772

$279,900B-

4 bd · 2.0 ba · 1,960 sqft · Built 1920 · MultiFamily · Active · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,592/mo
• Mortgage (P&I): −$1,468
• Tax + insurance: −$257
• HOA: −$0
• Vac / Maint / Mgmt: −$754
• Net cashflow: $1,113/mo
• Annual: $13,355/yr
• Cap rate: 11.06%
• Cash-on-cash: 17.04%
• DSCR: 1.76
• 1% rule: 1.28%
• Cash to close: $78,372

Investor read

• This is a 4-bed/2.0-bath multifamily listed at $280k.
• At list price, monthly cash flow is $1k ($13k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $280k).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-1.1%/yr); year-one equity from $2k of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Pecos-Barstow-Toyah ISD (town): math 28% / reading 30% proficiency, ranked #652 of 826 in TX (top 79%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 66% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Austin El (math 22% / reading 32%, grade F, #2,791 of 4,322 statewide, top 68%, 644 students, 80% FRL); Crockett Middle (math 30% / reading 29%, grade F, #1,077 of 1,662 statewide, top 66%, 635 students, 77% FRL); Pecos H S (math 12% / reading 25%, grade F, #1,436 of 1,632 statewide, top 88%, 766 students, 54% FRL) — zoned schools at 70% FRL track the district average.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 88 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 22 units permitted in Reeves County in 2024 (0 in 5+ unit buildings).
• Reeves County population projected at +45% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 8y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (-1.1% appreciation + 3.0% rent growth), your $78k cash investment doubles in ~6 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1920 — 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.