200 W Potts St

Falfurrias, TX 78355

$125,000D

3 bd · 1.0 ba · 1,499 sqft · Built 1969 · SingleFamily · Active · 61 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,215/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$223
• HOA: −$0
• Vac / Maint / Mgmt: −$255
• Net cashflow: $81/mo
• Annual: $977/yr
• Cap rate: 7.07%
• Cash-on-cash: 2.79%
• DSCR: 1.12
• 1% rule: 0.97%
• Cash to close: $35,000

Investor read

• This is a 3-bed/1.0-bath single-family listed at $125k.
• At list price, monthly cash flow is $81 ($977/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 $122k (2.8% below list).
• It's been on market 61 days — a 6% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $118k (6.0% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($864 loan paydown + $611 appreciation (0.5% local appreciation)).
• Location reads 72/100 on livability (#242 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Brooks County ISD (town): math 19% / reading 26% proficiency, ranked #776 of 826 in TX (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Lasater El (168 students, 98% FRL); Falfurrias J H (math 17% / reading 30%, grade F, #1,317 of 1,662 statewide, top 80%, 274 students, 87% FRL); Falfurrias H S (math 42% / reading 42%, grade F, #730 of 1,632 statewide, top 47%, 401 students, 92% FRL) — zoned schools average 92% FRL vs 19% district-wide (73 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 43 active listings in the ZIP.
• At projected returns (0.5% appreciation + 3.0% rent growth), your $35k cash investment doubles in ~9 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 61 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.