1512 Cherry St #2

Town of Pecos, TX 79772

$258,000B

6 bd · 4.0 ba · 2,254 sqft · Built 2018 · MultiFamily · Pending

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,563/mo
• Mortgage (P&I): −$1,353
• Tax + insurance: −$430
• HOA: −$0
• Vac / Maint / Mgmt: −$748
• Net cashflow: $1,032/mo
• Annual: $12,381/yr
• Cap rate: 11.09%
• Cash-on-cash: 17.14%
• DSCR: 1.76
• 1% rule: 1.38%
• Cash to close: $72,240

Investor read

• This is a 2 × 3-bed/2.0-bath units multifamily listed at $258k.
• At list price, monthly cash flow is $1k ($12k/yr) — positive. Per door: $516/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $258k).
• Only 0 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.
• Market conditions: 91 active listings in the ZIP; 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.
• At projected returns (-1.1% appreciation + 3.0% rent growth), your $72k cash investment doubles in ~6 years — after that, you're playing with house money.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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.