602 N Commerce St

Overton, TX 75684

$106,000B+

3 bd · 2.0 ba · 1,216 sqft · Built 1999 · Manufactured · Active · 31 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,375/mo
• Mortgage (P&I): −$556
• Tax + insurance: −$98
• HOA: −$0
• Vac / Maint / Mgmt: −$289
• Net cashflow: $433/mo
• Annual: $5,192/yr
• Cap rate: 11.19%
• Cash-on-cash: 17.49%
• DSCR: 1.78
• 1% rule: 1.30%
• Cash to close: $29,680

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $106k.
• At list price, monthly cash flow is $433 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $106k).
• It's been on market 31 days — a 3% lower offer ($103k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $103k (3.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($733 loan paydown + $3k appreciation (3.0% local appreciation)).
• Location reads 69/100 on livability (#432 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, crime A; Watch: amenities F, commute F, employment F.
• Overton ISD (rural): math 31% / reading 32% proficiency, ranked #582 of 826 in TX (top 70%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Overton El (math 32% / reading 37%, grade F, #1,995 of 4,322 statewide, top 50%, 237 students, 73% FRL); Overton H S (math 32% / reading 27%, grade F, #1,112 of 1,632 statewide, top 70%, 257 students, 66% FRL) — zoned schools average 69% FRL vs 52% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 70 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 4 units permitted in Rusk County in 2024 (0 in 5+ unit buildings).
• Rusk County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 6 sale attempts since 3y 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 (3.0% appreciation + 3.0% rent growth), your $30k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 31 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.