126 Ebony Ave #21

Rio Hondo, TX 78583

$145,000C+

4 bd · 1.0 ba · 1,852 sqft · Built 1963 · SingleFamily · Active · 35 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,435/mo
• Mortgage (P&I): −$760
• Tax + insurance: −$242
• HOA: −$0
• Vac / Maint / Mgmt: −$301
• Net cashflow: $132/mo
• Annual: $1,581/yr
• Cap rate: 7.38%
• Cash-on-cash: 3.89%
• DSCR: 1.17
• 1% rule: 0.99%
• Cash to close: $40,600

Investor read

• This is a 4-bed/1.0-bath single-family listed at $145k. Condition is rated fair.
• At list price, monthly cash flow is $132 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $144k (1.0% below list).
• It's been on market 35 days — a 3% lower offer ($141k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $141k (3.0% below list) — sets the bar for market timing.
• In year one you build about $11k of equity ($1k loan paydown + $10k appreciation (6.6% local appreciation)).
• Location reads 71/100 on livability (#305 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime C-, amenities F, commute F.
• Rio Hondo ISD (town): math 15% / reading 28% proficiency, ranked #769 of 826 in TX (top 93%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Rio Hondo El (math 12% / reading 17%, grade F, #4,048 of 4,322 statewide, top 95%, 624 students, 86% FRL); Rio Hondo Middle (math 14% / reading 29%, grade F, #1,378 of 1,662 statewide, top 83%, 488 students, 91% FRL); Rio Hondo H S (math 22% / reading 42%, grade F, #1,044 of 1,632 statewide, top 66%, 507 students, 83% FRL) — zoned schools average 87% FRL vs 23% district-wide (64 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 98 active listings in the ZIP; 2,326 units permitted in Cameron County in 2024 (503 in 5+ unit buildings).
• Cameron County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (6.6% appreciation + 3.0% rent growth), your $41k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→26/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 35 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1963 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Signs of wear and discoloration suggest significant damage.
• Major: siding — The siding is old and shows extensive wear.
• Major: concrete driveway — The driveway is cracked and uneven, indicating structural issues.
• Major: HVAC unit — The unit appears old and may need replacement or repair.
• Major: interior walls — The walls and ceilings show signs of wear and discoloration, indicating they need painting or repairs.
• Major: landscaping — The landscaping is sparse and overgrown, requiring significant maintenance or replacement.