108 W Adams St

Itasca, TX 76055

$375,000F

6 bd · 2.0 ba · 1,188 sqft · Built 2021 · MultiFamily · Active · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,750/mo
• Mortgage (P&I): −$1,967
• Tax + insurance: −$636
• HOA: −$0
• Vac / Maint / Mgmt: −$368
• Net cashflow: $-1,220/mo
• Annual: $-14,643/yr
• Cap rate: 2.39%
• Cash-on-cash: -13.95%
• DSCR: 0.38
• 1% rule: 0.47%
• Cash to close: $105,000

Investor read

• This is a 2 × 3-bed/2.0-bath units multifamily listed at $375k.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative. Per door: $-610/mo.
• To cash-flow at today's rent, offer at most $159k (57.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $175k (53.3% below list).
• It's been on market 27 days — a 2% lower offer ($369k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $159k (57.5% below list) — sets the bar for cash-flow.
• In year one you build about $40k of equity ($3k loan paydown + $38k appreciation (10.0% local appreciation)).
• Location reads 63/100 on livability (#832 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: employment D, amenities F, commute F.
• Itasca ISD (rural): math 23% / reading 35% proficiency, ranked #636 of 826 in TX (top 77%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Itasca El (math 17% / reading 32%, grade F, #3,052 of 4,322 statewide, top 74%, 295 students, 74% FRL).
• Market conditions: 83 active listings in the ZIP; 65 units permitted in Hill County in 2024 (0 in 5+ unit buildings).
• Hill County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 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 2, paydown + projected appreciation supports a ~$64k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.4% vs local median 5.7% in Itasca — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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.