302 Flamingo St

Sargent, TX 77414

$29,900B-

1 bd · 1.0 ba · 480 sqft · Built 1970 · SingleFamily · Active Under Contract · 129 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $804/mo
• Mortgage (P&I): −$157
• Tax + insurance: −$476
• HOA: −$3
• Vac / Maint / Mgmt: −$169
• Net cashflow: $-1/mo
• Annual: $-12/yr
• Cap rate: 23.37%
• Cash-on-cash: 61.00%
• DSCR: 3.71
• 1% rule: 2.69%
• Cash to close: $8,372

Investor read

• This is a 1-bed/1.0-bath single-family listed at $30k.
• At list price, monthly cash flow is $-1 ($-12/yr) — negative.
• To cash-flow at today's rent, offer at most $30k (0.5% below list).
• Meets the 1% rule at list price ($804 rent vs $30k).
• It's been on market 129 days — a 12% lower offer ($26k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $26k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $207 of loan paydown is wiped out by about $897 of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Van Vleck ISD (town): math 36% / reading 37% proficiency, ranked #492 of 826 in TX (top 60%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Van Vleck El (math 42% / reading 37%, grade F, #1,545 of 4,322 statewide, top 38%, 303 students, 58% FRL); Van Vleck Jr H S (math 29% / reading 38%, grade F, #911 of 1,662 statewide, top 56%, 243 students, 59% FRL); Van Vleck H S (math 57% / reading 42%, grade D, #509 of 1,632 statewide, top 34%, 355 students, 50% FRL) — zoned schools at 55% FRL track the district average.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: Rents rising (+3.3%/yr); 626 active listings in the ZIP; 153 units permitted in Matagorda County in 2024 (0 in 5+ unit buildings).
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent is only 16% of the median local income ($59k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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?
• It's been on market 129 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1970 — 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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.