484 Charles

Raymondville, TX 78580

$97,700D+

3 bd · 2.0 ba · 1,320 sqft · Built 1950 · SingleFamily · Active · 223 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $895/mo
• Mortgage (P&I): −$512
• Tax + insurance: −$493
• HOA: −$0
• Vac / Maint / Mgmt: −$188
• Net cashflow: $-298/mo
• Annual: $-3,578/yr
• Cap rate: 4.13%
• Cash-on-cash: -7.71%
• DSCR: 0.66
• 1% rule: 0.92%
• Cash to close: $27,356

Investor read

• This is a 3-bed/2.0-bath single-family listed at $98k.
• At list price, monthly cash flow is $-298 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $79k (19.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $90k (8.4% below list).
• It's been on market 223 days — a 12% lower offer ($86k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $79k (19.0% below list) — sets the bar for cash-flow.
• In year one you build about $9k of equity ($675 loan paydown + $8k appreciation (8.0% local appreciation)).
• Location reads 57/100 on livability (#1,266 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Raymondville ISD (town): math 28% / reading 37% proficiency, ranked #610 of 826 in TX (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 65% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Pittman El (math 37% / reading 42%, grade F, #1,545 of 4,322 statewide, top 38%, 579 students, 86% FRL); Myra Green Middle (math 29% / reading 33%, grade F, #1,015 of 1,662 statewide, top 62%, 425 students, 90% FRL); Raymondville H S (math 17% / reading 42%, grade F, #1,112 of 1,632 statewide, top 70%, 508 students, 82% FRL) — zoned schools average 86% FRL vs 65% district-wide (22 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 4.1% of price; flood insurance adds $122/mo; built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 58 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 36 units permitted in Willacy County in 2024 (0 in 5+ unit buildings).
• Willacy County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 4 sale attempts since 14y ago; this cycle's ask has dropped $57k (37%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 5, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AO (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 223 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?