2018 Main St

Petersburg, TX 79250

$75,000B+

3 bd · 2.0 ba · 1,378 sqft · Built 1965 · SingleFamily · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,231/mo
• Mortgage (P&I): −$393
• Tax + insurance: −$231
• HOA: −$0
• Vac / Maint / Mgmt: −$258
• Net cashflow: $348/mo
• Annual: $4,175/yr
• Cap rate: 11.86%
• Cash-on-cash: 19.88%
• DSCR: 1.88
• 1% rule: 1.64%
• Cash to close: $21,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $75k.
• At list price, monthly cash flow is $348 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $75k).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $284 of equity ($519 loan paydown + $-235 appreciation (-0.3% local appreciation)).
• Location reads 66/100 on livability (#637 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: health & safety C-, schools D+, employment D.
• Petersburg ISD (rural): math 55% / reading 45% proficiency, ranked #387 of 1,141 in TX (top 34%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; 65% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: property tax is 3.2% of price.
• Market conditions: 6 active listings in the ZIP; 13 units permitted in Hale County in 2024 (0 in 5+ unit buildings).
• Hale County population projected at -27% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-0.3% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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.