401 S Central St

Hallsville, TX 75650

$185,000B-

3 bd · 2.0 ba · 1,920 sqft · Built 1992 · Manufactured · Active · 29 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,850/mo
• Mortgage (P&I): −$970
• Tax + insurance: −$169
• HOA: −$0
• Vac / Maint / Mgmt: −$598
• Net cashflow: $1,113/mo
• Annual: $13,350/yr
• Cap rate: 13.51%
• Cash-on-cash: 25.77%
• DSCR: 2.15
• 1% rule: 1.54%
• Cash to close: $51,800

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $185k.
• At list price, monthly cash flow is $1k ($13k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $185k).
• It's been on market 29 days — a 2% lower offer ($182k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $182k (1.5% 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 76/100 on livability (#117 in TX, #3,765 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Hallsville ISD (town): math 30% / reading 40% proficiency, ranked #490 of 826 in TX (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hallsville H S (math 66% / reading 70%, grade B, #150 of 1,632 statewide, top 10%, 1,456 students, 40% FRL) — zoned schools at 40% FRL track the district average.
• Zoned-school proficiency averages 68% at this address vs 35% district-wide (+33 pts) — the actual schools serving this property are materially stronger than the Hallsville ISD average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: 168 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 85 units permitted in Harrison County in 2024 (15 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $52k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 62% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.