307 E 5th St

Sundown, TX 79372

$99,000C-

4 bd · 2.0 ba · 1,545 sqft · Built 1975 · SingleFamily · Active · 99 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,104/mo
• Mortgage (P&I): −$519
• Tax + insurance: −$463
• HOA: −$0
• Vac / Maint / Mgmt: −$232
• Net cashflow: $-110/mo
• Annual: $-1,316/yr
• Cap rate: 6.48%
• Cash-on-cash: 0.67%
• DSCR: 1.03
• 1% rule: 1.12%
• Cash to close: $27,720

Investor read

• This is a 4-bed/2.0-bath single-family listed at $99k.
• At list price, monthly cash flow is $-110 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $80k (19.6% below list).
• Meets the 1% rule at list price ($1k rent vs $99k).
• It's been on market 99 days — a 9% lower offer ($90k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $80k (19.6% below list) — sets the bar for cash-flow.
• In year one you build about $4k of equity ($684 loan paydown + $3k appreciation (3.1% local appreciation)).
• Location reads 77/100 on livability (#85 in TX, #2,982 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Sundown ISD (rural): math 68% / reading 53% proficiency, ranked #63 of 826 in TX (top 8%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Sundown El (math 72% / reading 52%, grade B, #321 of 4,322 statewide, top 8%, 260 students, 53% FRL); Sundown J H (math 72% / reading 52%, grade B+, #134 of 1,662 statewide, top 8%, 145 students, 47% FRL); Sundown H S (math 44% / reading 64%, grade C-, #379 of 1,632 statewide, top 26%, 181 students, 48% FRL).
• Watch-outs: property tax is 3.6% of price; flood insurance adds $125/mo.
• Market conditions: 13 active listings in the ZIP; 7 units permitted in Hockley County in 2024 (0 in 5+ unit buildings).
• Hockley County population projected at +21% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 4y ago; this cycle's ask has dropped $19k (16%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 9, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); moderate 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

• 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 99 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• Built in 1975 — 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 A-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?