708 Barrow St

Goldthwaite, TX 76844

$169,500D+

4 bd · 2.0 ba · 2,295 sqft · Built 1930 · SingleFamily · Active · 424 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,278/mo
• Mortgage (P&I): −$889
• Tax + insurance: −$359
• HOA: −$0
• Vac / Maint / Mgmt: −$268
• Net cashflow: $-238/mo
• Annual: $-2,861/yr
• Cap rate: 4.61%
• Cash-on-cash: -6.03%
• DSCR: 0.73
• 1% rule: 0.75%
• Cash to close: $47,460

Investor read

• This is a 4-bed/2.0-bath single-family listed at $170k.
• At list price, monthly cash flow is $-238 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $127k (24.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $128k (24.6% below list).
• It's been on market 424 days — a 12% lower offer ($149k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $127k (24.8% below list) — sets the bar for cash-flow.
• In year one you build about $15k of equity ($1k loan paydown + $14k appreciation (8.2% local appreciation)).
• Location reads 65/100 on livability (#725 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing B+; Watch: employment D, amenities F, commute F.
• Goldthwaite ISD (rural): math 65% / reading 63% proficiency, ranked #50 of 826 in TX (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Goldthwaite El (math 67% / reading 62%, grade B, #257 of 4,322 statewide, top 6%, 242 students, 52% FRL); Goldthwaite Middle (math 62% / reading 57%, grade B, #166 of 1,662 statewide, top 11%, 112 students, 44% FRL); Goldthwaite H S (math 74% / reading 84%, grade A-, #40 of 1,632 statewide, top 3%, 183 students, 34% FRL) — zoned schools at 43% FRL track the district average.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 77 active listings in the ZIP.
• Mills County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 4 sale attempts since 5y ago; this cycle's ask has dropped $60k (26%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 3, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.6% vs local median 1.7% in Goldthwaite — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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 424 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• Built in 1930 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.
• 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.