22577 Lime St

Coffee City, TX 75763

$279,000D

3 bd · 2.5 ba · 2,417 sqft · Built 1990 · SingleFamily · Active · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,418/mo
• Mortgage (P&I): −$1,463
• Tax + insurance: −$509
• HOA: −$25
• Vac / Maint / Mgmt: −$298
• Net cashflow: $-877/mo
• Annual: $-10,521/yr
• Cap rate: 2.52%
• Cash-on-cash: -13.47%
• DSCR: 0.40
• 1% rule: 0.51%
• Cash to close: $78,120

Investor read

• This is a 3-bed/2.5-bath single-family listed at $279k.
• At list price, monthly cash flow is $-877 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $124k (55.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $142k (49.2% below list).
• It's been on market 73 days — a 6% lower offer ($262k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $124k (55.5% below list) — sets the bar for cash-flow.
• In year one you build about $30k of equity ($2k loan paydown + $28k appreciation (10.0% local appreciation)).
• Location reads 63/100 on livability (#845 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: schools F, amenities F, commute F.
• Frankston ISD (rural): math 54% / reading 49% proficiency, ranked #155 of 826 in TX (top 19%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 191 active listings in the ZIP; 263 units permitted in Henderson County in 2024 (0 in 5+ unit buildings).
• 6 sale attempts since 7y 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.
• By year 2, paydown + projected appreciation supports a ~$48k 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→26/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 73 days. Have you received any prior offers? Is the seller open to a 56% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 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?
• 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.