240 Sycamore St

Alto, TX 75925

$155,000D-

3 bd · 3.0 ba · 2,255 sqft · Built 1978 · SingleFamily · Pending

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,102/mo
• Mortgage (P&I): −$813
• Tax + insurance: −$338
• HOA: −$0
• Vac / Maint / Mgmt: −$232
• Net cashflow: $-280/mo
• Annual: $-3,363/yr
• Cap rate: 4.12%
• Cash-on-cash: -7.75%
• DSCR: 0.66
• 1% rule: 0.71%
• Cash to close: $43,400

Investor read

• This is a 3-bed/3.0-bath single-family listed at $155k.
• At list price, monthly cash flow is $-280 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $105k (31.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $110k (28.9% below list).
• Only 0 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $105k (31.9% below list) — sets the bar for cash-flow.
• In year one you build about $206 of equity ($1k loan paydown + $-866 appreciation (-0.6% local appreciation)).
• Location reads 62/100 on livability (#944 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Alto ISD (rural): math 37% / reading 38% proficiency, ranked #484 of 826 in TX (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Alto Middle (math 37% / reading 32%, grade F, #858 of 1,662 statewide, top 54%, 167 students, 83% FRL) — zoned schools average 83% FRL vs 67% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 61 active listings in the ZIP; 39 units permitted in Cherokee 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.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→25/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?
• Built in 1978 — 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.
• 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.
• 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.