8922 Witter Ln

Temple, TX 76502

$295,000D-

4 bd · 2.0 ba · 2,176 sqft · Built 2000 · Manufactured · Active · 251 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,037/mo
• Mortgage (P&I): −$1,547
• Tax + insurance: −$918
• HOA: −$0
• Vac / Maint / Mgmt: −$428
• Net cashflow: $-856/mo
• Annual: $-10,276/yr
• Cap rate: 4.54%
• Cash-on-cash: -6.24%
• DSCR: 0.72
• 1% rule: 0.69%
• Cash to close: $82,600

Investor read

• This is a 4-bed/2.0-bath manufactured listed at $295k. Condition is rated good.
• At list price, monthly cash flow is $-856 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $171k (42.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $204k (31.0% below list).
• It's been on market 251 days — a 12% lower offer ($260k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $171k (42.0% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#122 in TX, #3,814 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: commute C-, crime D+, employment D+.
• Belton ISD (suburban): math 39% / reading 46% proficiency, ranked #285 of 826 in TX (top 34%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Southwest El (math 27% / reading 32%, grade F, #2,525 of 4,322 statewide, top 62%, 402 students, 87% FRL); Lake Belton Middle (math 47% / reading 52%, grade C, #356 of 1,662 statewide, top 23%, 826 students, 30% FRL); Belton H S (math 39% / reading 46%, grade F, #721 of 1,632 statewide, top 45%, 1,941 students, 46% FRL).
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: Rents soft (-0.8%/yr); 1312 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 3,222 units permitted in Bell County in 2024 (246 in 5+ unit buildings).
• Bell County population projected at +21% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 2y ago; this cycle's ask has dropped $55k (16%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.5% vs local median 3.6% in Temple — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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?
• It's been on market 251 days. Have you received any prior offers? Is the seller open to a 42% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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?
• 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.