1255 Mount Pleasant Rd

Kingsbury, TX 78638

$112,000B

3 bd · 2.0 ba · 1,344 sqft · Built 2004 · Manufactured · Pending · 53 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,274/mo
• Mortgage (P&I): −$587
• Tax + insurance: −$301
• HOA: −$0
• Vac / Maint / Mgmt: −$478
• Net cashflow: $908/mo
• Annual: $10,901/yr
• Cap rate: 16.03%
• Cash-on-cash: 34.76%
• DSCR: 2.55
• 1% rule: 2.03%
• Cash to close: $31,360

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $112k.
• At list price, monthly cash flow is $908 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $112k).
• It's been on market 53 days — a 3% lower offer ($109k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $109k (3.0% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($774 loan paydown + $4k appreciation (3.8% local appreciation)).
• Location reads 54/100 on livability (#1,407 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A; Watch: amenities F, commute F, housing F.
• Seguin ISD (town): math 26% / reading 30% proficiency, ranked #663 of 826 in TX (top 80%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Weinert El (math 37% / reading 37%, grade F, #1,769 of 4,322 statewide, top 44%, 479 students, 77% FRL); Jim Barnes Middle (math 24% / reading 25%, grade F, #1,279 of 1,662 statewide, top 78%, 797 students, 75% FRL); Seguin H S (math 24% / reading 43%, grade F, #1,011 of 1,632 statewide, top 63%, 2,101 students, 71% FRL).
• Watch-outs: property tax is 2.7% of price.
• Market conditions: 41 active listings in the ZIP; 2,064 units permitted in Guadalupe County in 2024 (133 in 5+ unit buildings).
• Guadalupe County population projected at +61% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts 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 (3.8% appreciation + 3.0% rent growth), your $31k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 16.0% vs local median 1.1% in Kingsbury — 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.

Questions for listing agent

• It's been on market 53 days. Have you received any prior offers? Is the seller open to a 3% 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?
• 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?
• 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.