600 Plano St

Sulphur Springs, TX 75482

$192,500C

3 bd · 2.0 ba · 1,887 sqft · Built 1963 · SingleFamily · Active · 166 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,128/mo
• Mortgage (P&I): −$1,009
• Tax + insurance: −$414
• HOA: −$0
• Vac / Maint / Mgmt: −$447
• Net cashflow: $258/mo
• Annual: $3,090/yr
• Cap rate: 7.90%
• Cash-on-cash: 5.73%
• DSCR: 1.26
• 1% rule: 1.11%
• Cash to close: $53,900

Investor read

• This is a 3-bed/2.0-bath single-family listed at $192k.
• At list price, monthly cash flow is $258 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $192k).
• It's been on market 166 days — a 12% lower offer ($169k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $169k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#350 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: employment D+, amenities F, commute F.
• Sulphur Springs ISD (town): math 46% / reading 40% proficiency, ranked #323 of 826 in TX (top 39%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Sulphur Springs El (math 49% / reading 40%, grade F, #1,155 of 4,322 statewide, top 29%, 639 students, 70% FRL); Sulphur Springs Middle (math 50% / reading 38%, grade D, #512 of 1,662 statewide, top 32%, 974 students, 61% FRL); Sulphur Springs H S (math 53% / reading 50%, grade D+, #478 of 1,632 statewide, top 29%, 1,263 students, 53% FRL).
• Market conditions: 384 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 66 units permitted in Hopkins County in 2024 (0 in 5+ unit buildings).
• Hopkins County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 3y ago; this cycle's ask has dropped $58k (23%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: major wind risk, 27% 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.
• Cap rate 7.9% vs local median 4.4% in Sulphur Springs — 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.
• This rent runs 37% of the median local income ($70k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 166 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1963 — 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.
• 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.