1404 2nd St · Brownwood, TX 76801

$19,900

3 bd · 2.0 ba · 2,090 sqft · SingleFamily public records · 14 Days on market

Built 1920 7,362 sqft lot

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Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +15.0/30.0
• ARV discount +7.5/15.0
• 1% rule +5.0/10.0
• DSCR +5.0/10.0
• Schools +3.6/10.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Investor opportunity with plenty of potential. This property features a duplex plus an additional rear house that is is in need of a full redevelopment or possible removal. The main unit offers 3 bedrooms and 2 bathrooms and has an occupant that will be out before closing. The second unit requires repairs & renovation, as plumbing and electrical components have been removed. Expect major repairs in all units. For buyers looking for a value-add project, this property presents multiple paths to create equity and maximize returns. Whether you're considering a renovation, rental strategy, or long-term investment, this is a chance to transform a property with significant upside potential.

Key facts

• Rear house
• Full redevelopment
• Value-add project

Tags

• DUPLEX
• REAR HOUSE
• FULL REDEVELOPMENT
• VALUE-ADD PROJECT
• SIGNIFICANT UPSIDE POTENTIAL

Property features AI

Finance

• Other: Corner lot will not be subdivided
• Financial info: Accepts Cash and Conventional financing; No second mortgage reported
• HOA & community: No homeowners association

Exterior

• Parking: Off-street parking
• Utilities: City water; City sewer; No municipal utility district
• Home design: Single family residence; One story; Residential property; No accessibility features reported; Not attached to another property; No subdivision restrictions known
• Construction: Built in 1920; Composition roof; Construction: rock/stone, vinyl siding, and wood; Slab foundation
• Exterior features: Garden(s); Corner lot

Interior

• Kitchen: Dishwasher; Disposal; Gas range; Microwave; Refrigerator
• Bedrooms: 3 bedrooms total; Primary bedroom (15 x 15)
• Flooring: Wood floors
• Bathrooms: 2 full bathrooms
• Heating & cooling: Window unit(s) for cooling; Other type of heating
• Interior features: Additional interior features noted as 'Other'; One living area; One dining area; Living room (15 x 15)
• Laundry & utility: Washer; Dryer

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $20k.

Deal economics

• At list price, monthly cash flow is $1k ($15k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $20k).
• Cap rate 83.7% vs local median 3.7% in Brownwood — 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.

Location & tenants

• Location reads 64/100 on livability (#781 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D+, health & safety D+, amenities F.
• Brownwood ISD (town): math 45% / reading 41% proficiency, ranked #344 of 826 in TX (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Coggin El (math 45% / reading 34%, grade F, #1,545 of 4,322 statewide, top 38%, 708 students, 79% FRL) — zoned schools average 79% FRL vs 54% district-wide (25 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 377 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 142 units permitted in Brown County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $138 of loan paydown is wiped out by about $597 of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $6k cash investment doubles in ~1 year — after that, you're playing with house money.

Negotiation context

• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $19,900

Questions for the listing agent

1. Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. Crime grade is D 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?
5. 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?
6. 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.
7. 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.
8. 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.

Investment metrics

• 1% rule: 9.05% ✓
• Cap rate: 83.75%
• Cash-on-cash: 276.63%
• DSCR: 13.31
• GRM: 0.9

CMA / ARV

• ARV (on-the-fly): $244,530
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1605 6th St	0.33mi	3/2.0	1,960 (-6%)	6mo	$105,000	$54	69
1617 6th St	0.35mi	4/1.0 (+1)	2,048 (-2%)	4mo	$75,000	$37	68
606 Avenue C	0.55mi	3/1.0	2,057 (-2%)	3mo	$45,000	$22	65
1009 Roselawn St	0.46mi	3/2.0	1,942 (-7%)	8mo	$320,000	$165	60
2107 Elizabeth Dr	0.58mi	4/2.0 (+1)	2,048 (-2%)	10mo	$239,900	$117	56
2204 Dartmore St	0.74mi	4/3.0 (+1)	2,029 (-3%)	3mo	$254,500	$125	49
2010 Brooke Ln	0.72mi	4/2.5 (+1)	2,203 (+5%)	4mo	$207,990	$94	46
1400 Cottage	0.56mi	4/2.5 (+1)	2,312 (+11%)	6mo	$298,000	$129	44
2100 Belmeade Ave	0.55mi	4/2.0 (+1)	2,361 (+13%)	5mo	$229,000	$97	43
2202 Belmeade Ave	0.66mi	4/3.0 (+1)	2,228 (+7%)	11mo	$299,000	$134	40
1908 Brooke Ln	0.66mi	3/2.0	1,781 (-15%)	11mo	$199,900	$112	35
2211 Belmeade	0.70mi	2/2.0 (-1)	1,846 (-12%)	12mo	$315,000	$171	33

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: —
• Equity multiple: 15.11×
• Total profit: $78,611
• Equity at exit: $2,967

10-year hold

• IRR: —
• Equity multiple: 32.21×
• Total profit: $173,906
• Equity at exit: $1,721

Cash invested: $5,572 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Texas: 87 Strongly Landlord-Friendly · R+5
• County: — inherits STATE
• City: — inherits STATE

3-day notice; statewide preemption; one of the fastest eviction climates; Travis County (Austin) slightly slower.

Methodology + full state rankings →

ZIP-level market 76801

• Active inventory: 377
• Price-to-rent: 0.9×

Monthly cashflow live

• Estimated rent: $1,800 medium
• Mortgage (P&I): −$104
• Tax est. 1.5%: −$25 /mo · $298/yr
• Insurance: −$8
• HOA: −$0
• Vacancy / Maint / Mgmt: −$378
• Net cashflow: $1,284

Break-even live

Break-even rent $174

Max offer price $19,900

Occupancy floor 24%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $4,975
• Closing costs: $597
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
2411 13th St Brownwood, TX	3.0	2.0	1466	$1,800	$1.23	43d	1	1.24mi

Listing history 11 events

1. 2026-06-16
   status $19,900 Pending 14 DOM
2. 2026-06-15
   days on market $19,900 Active 14 DOM
3. 2026-06-13
   days on market $19,900 Active 12 DOM
4. 2026-06-12
   pricedays on market $19,900 Active 11 DOM
5. 2026-06-09
   days on market $27,900 Active 8 DOM
6. 2026-06-08
   days on market $27,900 Active 7 DOM
7. 2026-06-08
   days on market $27,900 Active 6 DOM
8. 2026-06-07
   pricedays on market $27,900 Active 5 DOM
9. 2026-06-03
   days on market $34,900 Active 2 DOM
10. 2026-06-02
    remarks 695-char remark
11. 2026-06-02
    listed $34,900 Active 1 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 6/10 Major
• 🌡 Heat 7/10 Severe 7 d/yr ≥107°F today · 23 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $21,600
• − Mortgage interest: −$1,115
• − Property taxes: −$298
• − Insurance: −$100
• − Repairs & maintenance: −$1,728
• − Management: −$1,728
• − Depreciation: −$579
• Taxable income: $16,052
• Est. tax owed @ 24.0%: −$3,853
• After-tax cash flow: $11,561/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Brownwood ISD
• NCES district ID: 4811700
• Math proficiency: 45% ▲ 4.00%
• Reading proficiency: 41% ▲ 1.00%
• Median HH income: $37,395
• Composite: 35.8/100
• National rank: #4833
• State rank: #344 of 826 in TX

Livability — Brownwood

• Score: 64/100
• State rank: #781
• US rank: #14230

Category grades

Amenities F Commute F Cost of living A+ Crime D+ Employment D- Housing A+ Health & safety D+ User ratings C-

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Brownwood, TX
• Population (ZIP): 25,152

Population outlook (Brown County) Hauer SSP2

• Today (2025): 38,381 people
• By 2030: 38,288 · -0.2%
• By 2040: 38,120 · -0.7%
• By 2050: 38,227 · -0.4%
• By 2075: 39,362 · +2.6%
• By 2100: 39,171 · +2.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (66%)
• Race & ethnicity: White 66% Hispanic / Latino 26% Two or more races 15% Black 4%
• Hispanic origin (detail): Mexican 23%
• Common ancestry: Italian 12% Slovak 2% Lithuanian 1%
• Foreign-born: 4% · Canada
• Languages at home: 82% English-only · Spanish 17%

Political lean MEDSL · Brown

• 2024 margin: Solid R (+73.9) · D 12.7% · R 86.6%
• 2008→2024 swing: -12.5pp toward R · 2008: -61.5pp · 2024: -73.9pp
• All cycles: 2024: R+73.9 2020: R+72.6 2016: R+74.5 2012: R+71.7 2008: R+61.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -121.52%
• Current HPI: 164.0992
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 3.95%
• F500 in state: 110

Industry mix (Fortune 500 HQ in TX)

Industry	F500 HQs	Revenue
▸Energy	16	$1,198B
▸Technology	5	$198B
▸Engineering / Construction	4	$72B
▸Energy Services	3	$60B
▸Utilities	3	$41B
▸Healthcare	2	$330B

Price history

3 events — show timeline

• 2026-06-01 Listed $34,900 NTREIS
• 2000-12-13 Sold (Public Records) — Public Records
• 2000-12-13 Sold (Public Records) — Public Records

Property tax history

+4.3%/yr

Latest (2025): $2,454 · +2.9% YoY. Source: county tax records.