1817 1/2 Lincoln St

Laredo, TX 78040

$83,000B

4 bd · 1.0 ba · 1,880 sqft · Built 1998 · SingleFamily · Active · 375 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,619/mo
• Mortgage (P&I): −$435
• Tax + insurance: −$138
• HOA: −$0
• Vac / Maint / Mgmt: −$340
• Net cashflow: $706/mo
• Annual: $8,469/yr
• Cap rate: 16.50%
• Cash-on-cash: 36.44%
• DSCR: 2.62
• 1% rule: 1.95%
• Cash to close: $23,240

Investor read

• This is a 4-bed/1.0-bath single-family listed at $83k. Condition is rated poor.
• At list price, monthly cash flow is $706 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $83k).
• It's been on market 375 days — a 12% lower offer ($73k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $73k (12.0% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($574 loan paydown + $4k appreciation (4.9% local appreciation)).
• Location reads 73/100 on livability (#227 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime C-, employment D+, amenities F.
• Laredo ISD (urban): math 21% / reading 29% proficiency, ranked #739 of 826 in TX (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 82% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Dovalina El (math 22% / reading 32%, grade F, #2,791 of 4,322 statewide, top 68%, 384 students, 98% FRL); Christen Middle (math 10% / reading 16%, grade F, #1,609 of 1,662 statewide, top 97%, 1,098 students, 100% FRL); Martin H S (math 32% / reading 25%, grade F, #1,157 of 1,632 statewide, top 72%, 1,914 students, 99% FRL) — zoned schools average 99% FRL vs 82% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 135 active listings in the ZIP; lower-income renter base — watch delinquency; 1,448 units permitted in Webb County in 2024 (245 in 5+ unit buildings).
• Webb County population projected at +23% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 11 sale attempts since 2y ago; this cycle's ask is 9122% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• At projected returns (4.9% appreciation + 3.0% rent growth), your $23k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 80% 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 16.5% vs local median 4.2% in Laredo — 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.
• At $1,619/mo this rent would consume 54% of the median local household income ($36k/yr) (locally 15% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 375 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Significant wear and tear
• Major: exterior gate — Rusted and damaged
• Major: flooring — Worn-out and in need of replacement
• Major: interior walls — Peeling paint and exposed insulation
• Major: bathrooms — Exposed plumbing and missing fixtures
• Major: HVAC/mechanicals — No visible systems