228 Alamo St

Sullivan City, TX 78595

$70,000B

3 bd · 2.0 ba · 2,277 sqft · Built 1989 · SingleFamily · Pending · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,236/mo
• Mortgage (P&I): −$367
• Tax + insurance: −$276
• HOA: −$0
• Vac / Maint / Mgmt: −$259
• Net cashflow: $333/mo
• Annual: $3,992/yr
• Cap rate: 12.00%
• Cash-on-cash: 20.37%
• DSCR: 1.91
• 1% rule: 1.77%
• Cash to close: $19,600

Investor read

• This is a 3-bed/2.0-bath single-family listed at $70k.
• At list price, monthly cash flow is $333 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $70k).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $3k of equity ($484 loan paydown + $2k appreciation (2.9% local appreciation)).
• Location reads 55/100 on livability (#1,369 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing B; Watch: crime D, amenities F, commute F.
• La Joya ISD (suburban): math 18% / reading 29% proficiency, ranked #759 of 826 in TX (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Sam Fordyce El (math 17% / reading 27%, grade F, #3,333 of 4,322 statewide, top 80%, 404 students, 91% FRL); Lorenzo De Zavala Middle (math 18% / reading 22%, grade F, #1,428 of 1,662 statewide, top 87%, 606 students, 89% FRL); La Joya H S (math 16% / reading 32%, grade F, #1,333 of 1,632 statewide, top 82%, 2,775 students, 92% FRL) — zoned schools average 91% FRL vs 54% district-wide (37 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 4.2% of price.
• Market conditions: 37 active listings in the ZIP; 7,378 units permitted in Hidalgo County in 2024 (641 in 5+ unit buildings).
• Hidalgo County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 9y ago; this cycle's ask has dropped $90k (56%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (2.9% appreciation + 3.0% rent growth), your $20k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; severe wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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 D 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.
• 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.