The Audrey Plan

Winnsboro, TX 75480

$348,000F

2 bd · 2.0 ba · 3,520 sqft · Built — · SingleFamily · Active · 957 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,245/mo
• Mortgage (P&I): −$8,049
• Tax + insurance: −$2,558
• HOA: −$0
• Vac / Maint / Mgmt: −$471
• Net cashflow: $-8,833/mo
• Annual: $-105,993/yr
• Cap rate: -0.61%
• Cash-on-cash: -24.66%
• DSCR: -0.10
• 1% rule: 0.15%
• Cash to close: $429,736

Investor read

• This is a 2-bed/2.0-bath single-family listed at $348k.
• At list price, monthly cash flow is $-9k ($-106k/yr) — negative.
• To cash-flow at today's rent, offer at most $257k (26.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $225k (35.5% below list).
• It's been on market 957 days — a 12% lower offer ($306k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $225k (35.5% below list) — sets the bar for 1% rule.
• In year one you build about $89k of equity ($11k loan paydown + $79k appreciation (5.1% local appreciation)).
• Location reads 69/100 on livability (#416 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: employment D+, amenities F, commute F.
• Mount Vernon ISD (town): math 49% / reading 43% proficiency, ranked #251 of 826 in TX (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mt Vernon El (math 47% / reading 40%, grade F, #1,269 of 4,322 statewide, top 30%, 610 students, 70% FRL); Mt Vernon Middle (math 52% / reading 43%, grade C-, #408 of 1,662 statewide, top 25%, 472 students, 72% FRL); Mt Vernon H S (math 42% / reading 52%, grade D-, #591 of 1,632 statewide, top 38%, 489 students, 63% FRL) — zoned schools average 68% FRL vs 52% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 6.6% of price.
• Market conditions: 99 active listings in the ZIP; 7 units permitted in Franklin County in 2024 (0 in 5+ unit buildings).
• By year 2, paydown + projected appreciation supports a ~$143k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate -0.6% vs local median 3.8% in Winnsboro — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 957 days. Have you received any prior offers? Is the seller open to a 35% concession, seller financing, or rate buy-down credit?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.
• 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.