The Cardinal Plan

Tioga, TX 76271

$362,000D-

3 bd · 2.0 ba · 1,609 sqft · Built — · SingleFamily · Active · 957 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,700/mo
• Mortgage (P&I): −$2,016
• Tax + insurance: −$641
• HOA: −$0
• Vac / Maint / Mgmt: −$567
• Net cashflow: $-523/mo
• Annual: $-6,281/yr
• Cap rate: 4.66%
• Cash-on-cash: -5.84%
• DSCR: 0.74
• 1% rule: 0.70%
• Cash to close: $107,630

Investor read

• This is a 3-bed/2.0-bath single-family listed at $362k.
• At list price, monthly cash flow is $-523 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $309k (14.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $270k (25.4% below list).
• It's been on market 957 days — a 12% lower offer ($319k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $270k (25.4% below list) — sets the bar for 1% rule.
• In year one you build about $31k of equity ($3k loan paydown + $29k appreciation (7.5% local appreciation)).
• Location reads 66/100 on livability (#656 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Tioga ISD (rural): math 44% / reading 50% proficiency, ranked #226 of 826 in TX (top 27%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 85 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 2,272 units permitted in Grayson County in 2024 (750 in 5+ unit buildings).
• Grayson County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• By year 2, paydown + projected appreciation supports a ~$50k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→21/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?
• It's been on market 957 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• 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.
• 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.