224 County Road 3525

Hawkins, TX 75765

$120,000B

3 bd · 2.0 ba · 1,050 sqft · Built 2022 · SingleFamily · Active · 19 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,000/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$140
• HOA: −$0
• Vac / Maint / Mgmt: −$420
• Net cashflow: $811/mo
• Annual: $9,733/yr
• Cap rate: 14.40%
• Cash-on-cash: 28.97%
• DSCR: 2.29
• 1% rule: 1.67%
• Cash to close: $33,600

Investor read

• This is a 3-bed/2.0-bath single-family listed at $120k. Condition is rated poor.
• At list price, monthly cash flow is $811 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $120k).
• It's been on market 19 days — a 2% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $118k (1.5% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($830 loan paydown + $4k appreciation (3.1% local appreciation)).
• Location reads 73/100 on livability (#196 in TX, #4,982 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, crime A-; Watch: schools D+, amenities F, commute F.
• Hawkins ISD (rural): math 42% / reading 43% proficiency, ranked #339 of 826 in TX (top 41%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 216 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 72 units permitted in Wood County in 2024 (29 in 5+ unit buildings).
• Wood County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (3.1% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 50% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→25/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Grass trimming — The grass is overgrown and uneven, indicating a major need for trimming.
• Major: Roof inspection — The roof appears aged and may need inspection for potential damage.
• Major: Exterior painting — The exterior suggests a lack of maintenance, indicating a need for painting.
• Major: Landscaping — The overgrown grass and lack of landscaping indicate a need for landscaping improvements.
• Major: Foundation inspection — The foundation is not visible, but the exterior suggests a need for inspection for potential issues.
• Major: HVAC inspection and maintenance — The HVAC is not visible, but the exterior suggests a need for inspection and maintenance for potential issues.