2388 County Road 4455

McLeod, TX 75555

$103,000B

4 bd · 2.0 ba · 2,084 sqft · Built 1970 · SingleFamily · Active · 30 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,312/mo
• Mortgage (P&I): −$540
• Tax + insurance: −$168
• HOA: −$0
• Vac / Maint / Mgmt: −$276
• Net cashflow: $329/mo
• Annual: $3,944/yr
• Cap rate: 10.12%
• Cash-on-cash: 13.67%
• DSCR: 1.61
• 1% rule: 1.27%
• Cash to close: $28,840

Investor read

• This is a 4-bed/2.0-bath single-family listed at $103k.
• At list price, monthly cash flow is $329 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $103k).
• It's been on market 30 days — a 2% lower offer ($101k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $101k (1.5% below list) — sets the bar for market timing.
• In year one you build about $7k of equity ($712 loan paydown + $6k appreciation (5.8% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Mcleod ISD (rural): math 60% / reading 46% proficiency, ranked #137 of 826 in TX (top 17%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Mcleod El (math 54% / reading 44%, grade D, #865 of 4,322 statewide, top 21%, 165 students, 71% FRL); Mcleod Middle (math 62% / reading 42%, grade C+, #301 of 1,662 statewide, top 19%, 140 students, 54% FRL); Mcleod H S (math 70% / reading 70%, grade B, #119 of 1,632 statewide, top 9%, 109 students, 42% FRL) — zoned schools average 56% FRL vs 40% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 22 active listings in the ZIP; 12 units permitted in Cass County in 2024 (0 in 5+ unit buildings).
• Cass County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (5.8% appreciation + 3.0% rent growth), your $29k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 50% chance of damaging wind over 30y; major 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

• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.