822 E Fannin St

La Grange, TX 78945

$199,000D-

4 bd · 2.0 ba · 1,495 sqft · Built 2023 · Manufactured · Active · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,590/mo
• Mortgage (P&I): −$1,044
• Tax + insurance: −$208
• HOA: −$0
• Vac / Maint / Mgmt: −$334
• Net cashflow: $5/mo
• Annual: $55/yr
• Cap rate: 6.32%
• Cash-on-cash: 0.10%
• DSCR: 1.00
• 1% rule: 0.80%
• Cash to close: $55,720

Investor read

• This is a 4-bed/2.0-bath manufactured listed at $199k.
• At list price, monthly cash flow is $5 ($55/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $159k (20.1% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $159k (20.1% below list) — sets the bar for 1% rule.
• 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 62/100 on livability (#920 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• La Grange ISD (town): math 43% / reading 43% proficiency, ranked #300 of 826 in TX (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: La Grange El (math 31% / reading 34%, grade F, #2,234 of 4,322 statewide, top 52%, 998 students, 62% FRL); La Grange Middle (math 59% / reading 55%, grade B, #212 of 1,662 statewide, top 13%, 300 students, 52% FRL); La Grange H S (math 57% / reading 52%, grade C-, #379 of 1,632 statewide, top 26%, 585 students, 53% FRL).
• Market conditions: 174 active listings in the ZIP; 23 units permitted in Fayette County in 2024 (0 in 5+ unit buildings).
• Fayette County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 2y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Cap rate 6.3% vs local median 1.6% in La Grange — 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

• 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.
• 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.