108 7th St

Sterling City, TX 76951

$66,500B+

3 bd · 1.0 ba · 2,236 sqft · Built 1985 · SingleFamily · Pending · 48 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,332/mo
• Mortgage (P&I): −$349
• Tax + insurance: −$143
• HOA: −$0
• Vac / Maint / Mgmt: −$280
• Net cashflow: $560/mo
• Annual: $6,723/yr
• Cap rate: 16.40%
• Cash-on-cash: 36.11%
• DSCR: 2.61
• 1% rule: 2.00%
• Cash to close: $18,620

Investor read

• This is a 3-bed/1.0-bath single-family listed at $66k.
• At list price, monthly cash flow is $560 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $66k).
• It's been on market 48 days — a 3% lower offer ($65k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $65k (3.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($460 loan paydown + $2k appreciation (2.9% local appreciation)).
• Location reads 65/100 on livability (#727 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A-; Watch: health & safety C-, amenities F, commute F.
• Sterling City ISD (rural): math 45% / reading 45% proficiency, ranked #530 of 1,141 in TX (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 9 active listings in the ZIP.
• Sterling County population projected at +81% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts; this cycle's ask has dropped $5k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (2.9% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 6→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 48 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• 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.