404 W Plum St · Laredo, TX 78040

$140,000

3 bd · 2.0 ba · 1,594 sqft · SingleFamily public records · 57 Days on market

Built 1958 6,426 sqft lot $88/sqft · 37% below area Est $221k · 37% under

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Why this score? — see what drove the C- 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).

• ARV discount +15.0/15.0
• Cash flow +11.3/30.0
• Appreciation +7.5/10.0
• Livability +3.7/5.0
• 1% rule +3.6/10.0
• DSCR +3.3/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +2.0/10.0

Key facts

• 6,426 sq ft lot
• Built 1958
• Listed 57 days

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $140k.

Deal economics

• At list price, monthly cash flow is $-50 ($-604/yr) — negative.
• To cash-flow at today's rent, offer at most $131k (6.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $121k (13.8% below list).
• Recommended offer: $121k (13.8% below list) — sets the bar for 1% rule.
• Cap rate 5.9% vs local median 4.1% in Laredo — 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 73/100 on livability (#227 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools C-, crime C-, employment D+.
• Laredo ISD (urban): math 21% / reading 29% proficiency, ranked #739 of 826 in TX (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 82% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 66 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 1,448 units permitted in Webb County in 2024 (245 in 5+ unit buildings).

Forward outlook

• In year one you build about $8k of equity ($968 loan paydown + $7k appreciation (4.9% local appreciation)).
• Webb County population projected at +23% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (4.9% appreciation + 3.0% rent growth), your $39k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 57 days — a 3% lower offer ($136k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1958 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: moderate flood risk; severe wind risk, 80% 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 $120,741 (13.8% 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 57 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
3. Built in 1958 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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.
6. 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.
7. 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: 0.86% ✗
• Cap rate: 5.86%
• Cash-on-cash: -1.54%
• DSCR: 0.93
• GRM: 9.7

CMA / ARV

• ARV (median comp): $220,904
• List price: $140,000
• Delta: -36.62%
• Verdict: UNDERPRICED
• Comps: 7 within 2.0 mi

Show comp detail 1 sale within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1319 Frankfort St	0.60mi	4/2.0 (+1)	1,650 (+4%)	11mo	$225,000	$136	52

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

Projected returns pro-forma

4.93% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 11.4%
• Equity multiple: 1.73×
• Total profit: $28,531
• Equity at exit: $78,726

10-year hold

• IRR: 12.6%
• Equity multiple: 3.28×
• Total profit: $89,398
• Equity at exit: $135,369

Cash invested: $39,200 (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 78040

• Home prices YoY: 3.9%
• Active inventory: 66
• Price-to-rent: 9.7×

Monthly cashflow live

• Estimated rent: $1,207 medium
• Mortgage (P&I): −$734
• Tax from tax record: −$212 /mo · $2,540/yr
• Insurance: −$58
• HOA: −$0
• Vacancy / Maint / Mgmt: −$254
• Net cashflow: $-50

Break-even live

Break-even rent $1,271

Max offer price $131,111

Occupancy floor 99%

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: $35,000
• Closing costs: $4,200
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3509 Springfield Ave Laredo, TX	3.0	2.0	1394	$1,250	$0.90	44d	1	0.49mi
4505 Springfield Ave Laredo, TX	1.0–3.0	1.0–2.0	740	$1,050	$1.42	44d	3	0.97mi

Listing history 15 events

1. 2026-06-18
   days on market $140,000 Active 57 DOM
2. 2026-06-17
   days on market $140,000 Active 56 DOM
3. 2026-06-16
   days on market $140,000 Active 55 DOM
4. 2026-06-15
   days on market $140,000 Active 54 DOM
5. 2026-06-13
   days on market $140,000 Active 52 DOM
6. 2026-06-12
   days on market $140,000 Active 51 DOM
7. 2026-06-10
   days on market $140,000 Active 48 DOM
8. 2026-06-08
   days on market $140,000 Active 47 DOM
9. 2026-06-08
   days on market $140,000 Active 46 DOM
10. 2026-06-07
    days on market $140,000 Active 45 DOM
11. 2026-06-03
    days on market $140,000 Active 42 DOM
12. 2026-06-02
    days on market $140,000 Active 41 DOM
13. 2026-06-01
    days on market $140,000 Active 40 DOM
14. 2026-05-31
    days on market $140,000 Active 39 DOM
15. 2026-03-02
    listed $150,000 Active

ⓘ 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: $2,540 · $212/mo
• Projected year-2 tax: $2,562 · $214/mo
• Expected delta: +$22/yr (+$2/mo · 0.9%)

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

Climate risk First Street

• 🌊 Flood 5/10 Major FEMA zone X (unshaded) · 24% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 8/10 Severe 7 d/yr ≥110°F today · 23 d/yr by 30 yrs out
• 💨 Wind 8/10 Severe 80% 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: $14,489
• − Mortgage interest: −$7,842
• − Property taxes: −$2,540
• − Insurance: −$700
• − Repairs & maintenance: −$1,159
• − Management: −$1,159
• − Depreciation: −$4,073
• Taxable loss: −$2,984
• Est. tax savings @ 24.0%: +$716
• After-tax cash flow: $112/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: Laredo ISD
• NCES district ID: 4826790
• Math proficiency: 21% ▼ -34.00%
• Reading proficiency: 29% ▼ -13.00%
• Median HH income: $25,655
• Composite: 19.7/100
• National rank: #8724
• State rank: #739 of 826 in TX

Livability — Laredo

• Score: 73/100
• State rank: #227
• US rank: #5399

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Laredo, TX
• City population: 67,333
• Population (ZIP): 36,115

Population outlook (Webb County) Hauer SSP2

• Today (2025): 301,387 people
• By 2030: 316,307 · +5.0%
• By 2040: 345,636 · +14.7%
• By 2050: 370,647 · +23.0%
• By 2075: 413,907 · +37.3%
• By 2100: 416,458 · +38.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Hispanic (97%)
• Race & ethnicity: Hispanic / Latino 97% Two or more races 56% White 3%
• Hispanic origin (detail): Mexican 95%
• Foreign-born: 32% · Canada
• Languages at home: 7% English-only · Spanish 93%

Political lean MEDSL · Webb

• 2024 margin: Toss-up / Even · D 48.5% · R 50.7%
• 2008→2024 swing: -45.6pp toward R · 2008: 43.4pp · 2024: -2.2pp
• All cycles: 2024: R+2.2 2020: D+23.3 2016: D+51.6 2012: D+54.0 2008: D+43.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 4.93%
• Current HPI: 133.0457
• 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

1 event — show timeline

• 2026-03-02 Listed $150,000 LAOR

Property tax history

+1.8%/yr

Latest (2025): $2,540 · -2.5% YoY. Source: county tax records.