1223 N Broadway St

China, TX 77613

$210,000D

2 bd · 2.0 ba · 2,046 sqft · Built — · SingleFamily · Active · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,390/mo
• Mortgage (P&I): −$1,101
• Tax + insurance: −$416
• HOA: −$0
• Vac / Maint / Mgmt: −$292
• Net cashflow: $-419/mo
• Annual: $-5,034/yr
• Cap rate: 4.28%
• Cash-on-cash: -7.20%
• DSCR: 0.68
• 1% rule: 0.66%
• Cash to close: $58,800

Investor read

• This is a 2-bed/2.0-bath single-family listed at $210k.
• At list price, monthly cash flow is $-419 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $149k (28.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $139k (33.8% below list).
• It's been on market 73 days — a 6% lower offer ($197k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $139k (33.8% below list) — sets the bar for 1% rule.
• In year one you build about $8k of equity ($1k loan paydown + $6k appreciation (3.0% local appreciation)).
• Location reads 65/100 on livability (#730 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Hardin-Jefferson ISD (rural): math 54% / reading 49% proficiency, ranked #135 of 826 in TX (top 16%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: China El (math 41% / reading 45%, grade F, #1,283 of 4,322 statewide, top 30%, 558 students, 54% FRL); Henderson Middle (math 59% / reading 47%, grade C+, #281 of 1,662 statewide, top 18%, 617 students, 41% FRL); Hardin-Jefferson H S (math 68% / reading 67%, grade B, #158 of 1,632 statewide, top 10%, 749 students, 38% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 47 active listings in the ZIP; 343 units permitted in Jefferson County in 2024 (0 in 5+ unit buildings).
• By year 5, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk; severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.3% vs local median 3.2% in China — 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.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 73 days. Have you received any prior offers? Is the seller open to a 34% concession, seller financing, or rate buy-down credit?
• 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?
• 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?
• 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.