209 S Terrell St

Falfurrias, TX 78355

$27,000D+

3 bd · 2.0 ba · 1,440 sqft · Built 1900 · Manufactured · Pending · 198 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,201/mo
• Mortgage (P&I): −$142
• Tax + insurance: −$179
• HOA: −$0
• Vac / Maint / Mgmt: −$252
• Net cashflow: $629/mo
• Annual: $7,545/yr
• Cap rate: 39.67%
• Cash-on-cash: 119.22%
• DSCR: 6.30
• 1% rule: 4.45%
• Cash to close: $7,560

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $27k.
• At list price, monthly cash flow is $629 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $27k).
• It's been on market 198 days — a 12% lower offer ($24k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $24k (12.0% below list) — sets the bar for market timing.
• In year one you build about $319 of equity ($187 loan paydown + $132 appreciation (0.5% local appreciation)).
• Location reads 72/100 on livability (#242 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools D, amenities F, commute F.
• Brooks County ISD (town): math 19% / reading 26% proficiency, ranked #776 of 826 in TX (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; only 19% free/reduced lunch — higher-income household profile.
• Watch-outs: flood insurance adds $122/mo; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 42 active listings in the ZIP.
• At projected returns (0.5% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone AO (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; severe wildfire risk; extreme-heat days projected 7→20/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 198 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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?
• 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.