566 4777

Sulphur Springs, TX 75482

$69,900B-

3 bd · 2.0 ba · 1,248 sqft · Built 1983 · SingleFamily · Active · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,687/mo
• Mortgage (P&I): −$367
• Tax + insurance: −$116
• HOA: −$0
• Vac / Maint / Mgmt: −$354
• Net cashflow: $849/mo
• Annual: $10,194/yr
• Cap rate: 20.88%
• Cash-on-cash: 52.08%
• DSCR: 3.32
• 1% rule: 2.41%
• Cash to close: $19,572

Investor read

• This is a 3-bed/2.0-bath single-family listed at $70k. Condition is rated fair.
• At list price, monthly cash flow is $849 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $70k).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $483 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#350 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: employment D+, amenities F, commute F.
• Sulphur Springs ISD (town): math 46% / reading 40% proficiency, ranked #323 of 826 in TX (top 39%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Sulphur Springs El (math 49% / reading 40%, grade F, #1,155 of 4,322 statewide, top 29%, 639 students, 70% FRL); Sulphur Springs Middle (math 50% / reading 38%, grade D, #512 of 1,662 statewide, top 32%, 974 students, 61% FRL); Sulphur Springs H S (math 53% / reading 50%, grade D+, #478 of 1,632 statewide, top 29%, 1,263 students, 53% FRL).
• Market conditions: 518 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals lingering (median 140d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; 66 units permitted in Hopkins County in 2024 (0 in 5+ unit buildings).
• Hopkins County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $20k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 20.9% vs local median 4.5% in Sulphur Springs — 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

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Kitchen cabinets — The cabinets are outdated and need to be replaced.
• Major: Bathroom fixtures — The fixtures are outdated and need to be replaced.
• Major: Kitchen countertops — The countertops are outdated and need to be replaced.
• Major: Bathroom flooring — The flooring is carpeted and in poor condition and needs to be replaced.
• Minor: Exterior siding — The siding has some discoloration and minor damage that can be repaired.
• Major: Exterior landscaping — The landscaping is overgrown and needs trimming and maintenance.