408 W Edward St

Falfurrias, TX 78355

$44,999A-

2 bd · 1.0 ba · 768 sqft · Built 1946 · SingleFamily · Active · 419 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $869/mo
• Mortgage (P&I): −$236
• Tax + insurance: −$172
• HOA: −$0
• Vac / Maint / Mgmt: −$183
• Net cashflow: $279/mo
• Annual: $3,345/yr
• Cap rate: 16.99%
• Cash-on-cash: 38.20%
• DSCR: 2.70
• 1% rule: 1.93%
• Cash to close: $12,600

Investor read

• This is a 2-bed/1.0-bath single-family listed at $45k.
• At list price, monthly cash flow is $279 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($869 rent vs $45k).
• It's been on market 419 days — a 12% lower offer ($40k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $40k (12.0% below list) — sets the bar for market timing.
• In year one you build about $531 of equity ($311 loan paydown + $220 appreciation (0.5% local appreciation)).
• Location reads 72/100 on livability (#242 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools D, amenities F, commute F.
• Brooks County ISD (town): math 19% / reading 26% proficiency, ranked #776 of 826 in TX (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; only 19% free/reduced lunch — higher-income household profile.
• Watch-outs: flood insurance adds $122/mo; built in 1946 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 42 active listings in the ZIP.
• At projected returns (0.5% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone AO (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; severe wildfire risk; extreme-heat days projected 7→20/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 419 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1946 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.