108 11th St

Plains, TX 79355

$120,000D

3 bd · 1.0 ba · 910 sqft · Built 2007 · SingleFamily · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $949/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$176
• HOA: −$0
• Vac / Maint / Mgmt: −$199
• Net cashflow: $-56/mo
• Annual: $-667/yr
• Cap rate: 5.74%
• Cash-on-cash: -1.99%
• DSCR: 0.91
• 1% rule: 0.79%
• Cash to close: $33,600

Investor read

• This is a 3-bed/1.0-bath single-family listed at $120k.
• At list price, monthly cash flow is $-56 ($-667/yr) — negative.
• To cash-flow at today's rent, offer at most $110k (8.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $95k (20.9% below list).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $95k (20.9% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($830 loan paydown + $3k appreciation (2.8% local appreciation)).
• Location reads 61/100 on livability (#992 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A-, housing B+; Watch: employment D, amenities F, commute F.
• Plains ISD (rural): math 33% / reading 32% proficiency, ranked #560 of 826 in TX (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Plains El (math 22% / reading 27%, grade F, #3,052 of 4,322 statewide, top 74%, 203 students, 66% FRL); Plains Middle (math 32% / reading 32%, grade F, #971 of 1,662 statewide, top 60%, 96 students, 69% FRL); Plains H S (math 54% / reading 44%, grade D, #509 of 1,632 statewide, top 34%, 132 students, 59% FRL) — zoned schools average 65% FRL vs 48% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 13 active listings in the ZIP; 6 units permitted in Yoakum County in 2024 (0 in 5+ unit buildings).
• Yoakum County population projected at +48% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 8y ago 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.
• At projected returns (2.8% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~8 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?
• 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.