118 North St · Mercedes, TX 78570

$130,000

2 bd · 1.0 ba · 896 sqft · SingleFamily public records · 123 Days on market

Built 1988 6,151 sqft lot $145/sqft · at area comps Est $133k · at est. ↓ 4% since listing

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Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +10.7/30.0
• ARV discount +8.4/15.0
• Appreciation +7.3/10.0
• Livability +3.4/5.0
• DSCR +3.1/10.0
• 1% rule +2.9/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +1.3/10.0

Listing remarks MLS

Welcome to this cozy 3-bedroom, 1-bath home offering comfort and convenience on a generous lot. Ideal for first-time buyers or investors, this move-in ready property features tile flooring throughout the main areas, ceiling fans in every bedroom, and a beautifully tiled bathroom with a spacious walk-in shower and modern pedestal sink. The inviting living area showcases a tray ceiling with decorative wood beams and recessed lighting, adding architectural character. The kitchen offers warm wood cabinetry, tile backsplash, ample storage, and a white gas range. Step outside to enjoy a fully fenced backyard complete with a storage shed and charming gazebo—perfect for relaxing or entertaining. A covered front porch and concrete driveway provide great curb appeal and off-street parking. Conveniently located near schools, shopping, and Expressway 83, this home is a wonderful opportunity in the heart of Mercedes.

Key facts

• Tray ceiling
• Tiled bathroom
• Tile flooring

Tags

• TILE FLOORING
• TILED BATHROOM
• WALK-IN SHOWER
• PEDESTAL SINK
• TRAY CEILING
• DECORATIVE WOOD BEAMS

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $130k.

Deal economics

• At list price, monthly cash flow is $-62 ($-746/yr) — negative.
• To cash-flow at today's rent, offer at most $119k (8.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $103k (20.6% below list).
• Recommended offer: $103k (20.6% below list) — sets the bar for 1% rule.
• Cap rate 5.7% vs local median 3.4% in Mercedes — 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.

Location & tenants

• Location reads 67/100 on livability (#547 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, amenities F, commute F.
• Mercedes ISD (suburban): math 12% / reading 21% proficiency, ranked #811 of 826 in TX (top 98%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 80% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Taylor El (math 17% / reading 12%, grade F, #4,048 of 4,322 statewide, top 95%, 410 students, 95% FRL); Sgt William G Harrell Middle (math 6% / reading 18%, grade F, #1,623 of 1,662 statewide, top 98%, 451 students, 95% FRL); Mercedes H S (math 8% / reading 12%, grade F, #1,591 of 1,632 statewide, top 98%, 974 students, 91% FRL).
• Market conditions: 393 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 7,378 units permitted in Hidalgo County in 2024 (641 in 5+ unit buildings).

Forward outlook

• In year one you build about $7k of equity ($899 loan paydown + $6k appreciation (4.5% local appreciation)).
• Hidalgo County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (4.5% appreciation + 3.0% rent growth), your $36k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 123 days — a 12% lower offer ($114k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts 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.

Risks & watch-outs

• Climate carrying-cost: severe wind risk, 99% 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.

Recommended offer $103,226 (20.6% below list)

Questions for the listing agent

1. 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?
2. It's been on market 123 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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?
7. 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?
8. 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.
9. 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.
10. 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.

Investment metrics

• 1% rule: 0.79% ✗
• Cap rate: 5.72%
• Cash-on-cash: -2.05%
• DSCR: 0.91
• GRM: 10.5

CMA / ARV

• ARV (median comp): $132,552
• List price: $130,000
• Delta: -1.93%
• Verdict: FAIR
• Comps: 19 within 1.0 mi

Show comp detail 1 sale within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
432 Heidrick Ave	0.45mi	2/1.0	796 (-11%)	12mo	$69,000	$87	50

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

4.53% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 9.9%
• Equity multiple: 1.62×
• Total profit: $22,510
• Equity at exit: $69,953

10-year hold

• IRR: 11.5%
• Equity multiple: 3.01×
• Total profit: $73,250
• Equity at exit: $117,762

Cash invested: $36,400 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Texas: 87 Strongly Landlord-Friendly · R+5
• County: — inherits STATE
• City: — inherits STATE

3-day notice; statewide preemption; one of the fastest eviction climates; Travis County (Austin) slightly slower.

Methodology + full state rankings →

ZIP-level market 78570

• Home prices YoY: 1.9%
• Active inventory: 393
• Price-to-rent: 10.5×

Monthly cashflow live

• Estimated rent: $1,032 high
• Mortgage (P&I): −$682
• Tax from tax record: −$142 /mo · $1,701/yr
• Insurance: −$54
• HOA: −$0
• Vacancy / Maint / Mgmt: −$217
• Net cashflow: $-62

Break-even live

Break-even rent $1,111

Max offer price $119,012

Occupancy floor —

Sensitivity live

Price	-10% $11	-5% $-25	+0% $-62	+5% $-99	+10% $-136
Rent	-10% $-144	-5% $-103	+0% $-62	+5% $-21	+10% $19
Rate	-1.0pp $3	-0.5pp $-29	base $-62	+0.5pp $-96	+1.0pp $-130

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $32,500
• Closing costs: $3,900
• Reserves months: —
• Total cash needed: —

Rent comps 8 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1202 North St Mercedes, TX	2.0	2.0	864	$885	$1.02	45d	1	0.13mi
203 E Royal Palm Dr Unit A Mercedes, TX	3.0	2.0	1100	$1,300	$1.18	45d	1	0.70mi
203 E Royal Palm Dr Unit C Mercedes, TX	3.0	2.0	1022	$1,275	$1.25	45d	1	0.70mi
203 E Royal Palm Dr Unit D Mercedes, TX	3.0	2.0	1022	$1,325	$1.30	45d	1	0.70mi
907 E Starr Rd Unit D Mercedes, TX	3.0	2.0	1078	$1,050	$0.97	45d	1	1.21mi
906 E Starr Rd Unit B Mercedes, TX	3.0	2.0	1078	$1,100	$1.02	45d	1	1.23mi
1003 E Starr Rd Unit C Mercedes, TX	2.0	2.0	950	$995	$1.05	45d	1	1.25mi
1011 E Starr Rd Unit D Mercedes, TX	3.0	2.0	1078	$1,095	$1.02	45d	1	1.28mi

Listing history 20 events

1. 2026-06-21
   days on market $130,000 Active 123 DOM
2. 2026-06-21
   days on market $130,000 Active 122 DOM
3. 2026-06-18
   days on market $130,000 Active 120 DOM
4. 2026-06-17
   days on market $130,000 Active 119 DOM
5. 2026-06-16
   days on market $130,000 Active 118 DOM
6. 2026-06-15
   days on market $130,000 Active 117 DOM
7. 2026-06-15
   days on market $130,000 Active 116 DOM
8. 2026-06-13
   days on market $130,000 Active 115 DOM
9. 2026-06-12
   days on market $130,000 Active 114 DOM
10. 2026-06-10
    days on market $130,000 Active 111 DOM
11. 2026-06-08
    days on market $130,000 Active 110 DOM
12. 2026-06-08
    days on market $130,000 Active 109 DOM
13. 2026-06-07
    days on market $130,000 Active 108 DOM
14. 2026-06-03
    days on market $130,000 Active 105 DOM
15. 2026-06-02
    days on market $130,000 Active 104 DOM
16. 2026-06-01
    days on market $130,000 Active 103 DOM
17. 2026-05-31
    days on market $130,000 Active 102 DOM
18. 2026-03-25
    price $130,000 923-char remark

    Show marketing remark (923 chars)

    Welcome to this cozy 3-bedroom, 1-bath home offering comfort and convenience on a generous lot. Ideal for first-time buyers or investors, this move-in ready property features tile flooring throughout the main areas, ceiling fans in every bedroom, and a beautifully tiled bathroom with a spacious walk-in shower and modern pedestal sink. The inviting living area showcases a tray ceiling with decorative wood beams and recessed lighting, adding architectural character. The kitchen offers warm wood cabinetry, tile backsplash, ample storage, and a white gas range. Step outside to enjoy a fully fenced backyard complete with a storage shed and charming gazebo—perfect for relaxing or entertaining. A covered front porch and concrete driveway provide great curb appeal and off-street parking. Conveniently located near schools, shopping, and Expressway 83, this home is a wonderful opportunity in the heart of Mercedes.

19. 2026-02-16
    listed $135,000 Active 923-char remark

    Show marketing remark (923 chars)

    Welcome to this cozy 3-bedroom, 1-bath home offering comfort and convenience on a generous lot. Ideal for first-time buyers or investors, this move-in ready property features tile flooring throughout the main areas, ceiling fans in every bedroom, and a beautifully tiled bathroom with a spacious walk-in shower and modern pedestal sink. The inviting living area showcases a tray ceiling with decorative wood beams and recessed lighting, adding architectural character. The kitchen offers warm wood cabinetry, tile backsplash, ample storage, and a white gas range. Step outside to enjoy a fully fenced backyard complete with a storage shed and charming gazebo—perfect for relaxing or entertaining. A covered front porch and concrete driveway provide great curb appeal and off-street parking. Conveniently located near schools, shopping, and Expressway 83, this home is a wonderful opportunity in the heart of Mercedes.

20. 2026-02-14
    listed $135,000 Active 923-char remark

    Show marketing remark (923 chars)

    Welcome to this cozy 3-bedroom, 1-bath home offering comfort and convenience on a generous lot. Ideal for first-time buyers or investors, this move-in ready property features tile flooring throughout the main areas, ceiling fans in every bedroom, and a beautifully tiled bathroom with a spacious walk-in shower and modern pedestal sink. The inviting living area showcases a tray ceiling with decorative wood beams and recessed lighting, adding architectural character. The kitchen offers warm wood cabinetry, tile backsplash, ample storage, and a white gas range. Step outside to enjoy a fully fenced backyard complete with a storage shed and charming gazebo—perfect for relaxing or entertaining. A covered front porch and concrete driveway provide great curb appeal and off-street parking. Conveniently located near schools, shopping, and Expressway 83, this home is a wonderful opportunity in the heart of Mercedes.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast TX · Resets to sale price

• Current annual tax: $1,701 · $142/mo
• Projected year-2 tax: $2,379 · $198/mo
• Expected delta: +$678/yr (+$56/mo · 39.8%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 3/10 Moderate FEMA zone X (shaded) · 20% chance over 30 yrs
• 🔥 Wildfire 4/10 Moderate
• 🌡 Heat 9/10 Extreme 7 d/yr ≥111°F today · 23 d/yr by 30 yrs out
• 💨 Wind 8/10 Severe 99% chance of damaging wind over 30 yrs
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $12,387
• − Mortgage interest: −$7,282
• − Property taxes: −$1,701
• − Insurance: −$650
• − Repairs & maintenance: −$991
• − Management: −$991
• − Depreciation: −$3,782
• Taxable loss: −$3,010
• Est. tax savings @ 24.0%: +$722
• After-tax cash flow: $-24/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Mercedes ISD
• NCES district ID: 4830250
• Math proficiency: 12% ▼ -26.00%
• Reading proficiency: 21% ▼ -10.00%
• Median HH income: $27,606
• Composite: 12.84/100
• National rank: #9596
• State rank: #811 of 826 in TX

Livability — Mercedes

• Score: 67/100
• State rank: #547
• US rank: #10619

Category grades

Amenities F Commute F Cost of living A+ Crime F Employment F Housing A+ Health & safety A+ User ratings B-

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Mercedes, TX
• City population: 33,596
• Population (ZIP): 33,596

Population outlook (Hidalgo County) Hauer SSP2

• Today (2025): 955,232 people
• By 2030: 1,009,774 · +5.7%
• By 2040: 1,120,332 · +17.3%
• By 2050: 1,225,036 · +28.2%
• By 2075: 1,439,189 · +50.7%
• By 2100: 1,533,429 · +60.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Hispanic (96%)
• Race & ethnicity: Hispanic / Latino 96% Two or more races 44% White 4%
• Hispanic origin (detail): Mexican 91%
• Foreign-born: 20% · Canada
• Languages at home: 18% English-only · Spanish 82%

Political lean MEDSL · Hidalgo

• 2024 margin: Toss-up / Even · D 48.1% · R 51.0%
• 2008→2024 swing: -41.6pp toward R · 2008: 38.7pp · 2024: -2.9pp
• All cycles: 2024: R+2.9 2020: D+17.1 2016: D+40.5 2012: D+41.8 2008: D+38.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 4.53%
• Current HPI: 238.8386
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 3.95%
• F500 in state: 110

Industry mix (Fortune 500 HQ in TX)

Industry	F500 HQs	Revenue
▸Energy	16	$1,198B
▸Technology	5	$198B
▸Engineering / Construction	4	$72B
▸Energy Services	3	$60B
▸Utilities	3	$41B
▸Healthcare	2	$330B

Price history

-3.7% since first listed

3 events — show timeline

• 2026-03-25 Price Changed $130,000 MCALLENMLS
• 2026-02-16 Listed $135,000 RGVMLS
• 2026-02-14 Listed $135,000 MCALLENMLS

Property tax history

+6.1%/yr

Latest (2025): $1,701 · +18.7% YoY. Source: county tax records.