110 E Ross St

Rising Star, TX 76471

$27,000C

3 bd · 1.0 ba · 1,400 sqft · Built 1940 · SingleFamily · Active · 35 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,192/mo
• Mortgage (P&I): −$142
• Tax + insurance: −$110
• HOA: −$0
• Vac / Maint / Mgmt: −$250
• Net cashflow: $690/mo
• Annual: $8,274/yr
• Cap rate: 39.89%
• Cash-on-cash: 119.99%
• DSCR: 6.34
• 1% rule: 4.41%
• Cash to close: $7,560

Investor read

• This is a 3-bed/1.0-bath single-family listed at $27k.
• At list price, monthly cash flow is $690 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $27k).
• It's been on market 35 days — a 3% lower offer ($26k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $26k (3.0% below list) — sets the bar for market timing.
• In year one you build about $891 of equity ($187 loan paydown + $704 appreciation (2.6% local appreciation)).
• Location reads 54/100 on livability (#1,392 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: housing C-, health & safety D+, crime F.
• Rising Star ISD (rural): math 40% / reading 40% proficiency, ranked #773 of 1,141 in TX (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Rising Star El (math 24% / reading 34%, grade F, #2,525 of 4,322 statewide, top 62%, 94 students, 68% FRL).
• Watch-outs: flood insurance adds $66/mo; built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 35 active listings in the ZIP; 10 units permitted in Eastland County in 2024 (0 in 5+ unit buildings).
• Eastland County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (2.6% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: major flood risk; major wind risk, 27% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 6→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 35 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.