206 E Second St

Corrigan, TX 75939

$93,468C-

3 bd · 2.0 ba · 1,468 sqft · Built 1980 · SingleFamily · Pending · 19 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,108/mo
• Mortgage (P&I): −$490
• Tax + insurance: −$416
• HOA: −$0
• Vac / Maint / Mgmt: −$233
• Net cashflow: $-31/mo
• Annual: $-376/yr
• Cap rate: 5.89%
• Cash-on-cash: -1.44%
• DSCR: 0.94
• 1% rule: 1.19%
• Cash to close: $26,171

Investor read

• This is a 3-bed/2.0-bath single-family listed at $93k.
• At list price, monthly cash flow is $-31 ($-376/yr) — negative.
• To cash-flow at today's rent, offer at most $91k (3.1% below list).
• Meets the 1% rule at list price ($1k rent vs $93k).
• It's been on market 19 days — a 2% lower offer ($92k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $91k (3.1% below list) — sets the bar for cash-flow.
• In year one you build about $3k of equity ($646 loan paydown + $2k appreciation (2.1% local appreciation)).
• Location reads 56/100 on livability (#1,302 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: schools F, crime F, amenities F.
• Corrigan-Camden ISD (rural): math 30% / reading 33% proficiency, ranked #609 of 826 in TX (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 72% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: property tax is 4.8% of price.
• Market conditions: 45 active listings in the ZIP; 769 units permitted in Polk County in 2024 (0 in 5+ unit buildings).
• Polk County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (2.1% appreciation + 3.0% rent growth), your $26k cash investment doubles in ~9 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 96% chance of damaging wind over 30y; extreme-heat days projected 7→24/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?
• 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.