101 S Loop Dr

Brady, TX 76825

$175,000D

2 bd · 1.0 ba · 625 sqft · Built 1990 · SingleFamily · Pending · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $949/mo
• Mortgage (P&I): −$918
• Tax + insurance: −$403
• HOA: −$10
• Vac / Maint / Mgmt: −$199
• Net cashflow: $-581/mo
• Annual: $-6,966/yr
• Cap rate: 3.17%
• Cash-on-cash: -11.15%
• DSCR: 0.50
• 1% rule: 0.54%
• Cash to close: $49,000

Investor read

• This is a 2-bed/1.0-bath single-family listed at $175k.
• At list price, monthly cash flow is $-581 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $72k (58.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $95k (45.8% below list).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $72k (58.6% below list) — sets the bar for cash-flow.
• In year one you build about $13k of equity ($1k loan paydown + $11k appreciation (6.5% local appreciation)).
• Location reads 72/100 on livability (#270 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, amenities F, commute F.
• Brady ISD (rural): math 50% / reading 46% proficiency, ranked #238 of 826 in TX (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Brady El (math 33% / reading 34%, grade F, #2,174 of 4,322 statewide, top 51%, 476 students, 74% FRL); Brady Middle (math 61% / reading 50%, grade B-, #240 of 1,662 statewide, top 15%, 180 students, 58% FRL); Brady H S (math 62% / reading 67%, grade B-, #199 of 1,632 statewide, top 14%, 300 students, 58% FRL).
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: 105 active listings in the ZIP; 2 units permitted in McCulloch County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 3, paydown + projected appreciation supports a ~$31k 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); major wind risk, 27% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→23/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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.