217 2nd St

Cross Plains, TX 76443

$230,000D+

4 bd · 4.0 ba · 3,120 sqft · Built 2018 · MultiFamily · Active · 183 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,988/mo
• Mortgage (P&I): −$1,206
• Tax + insurance: −$365
• HOA: −$0
• Vac / Maint / Mgmt: −$417
• Net cashflow: $-0/mo
• Annual: $-4/yr
• Cap rate: 6.29%
• Cash-on-cash: -0.01%
• DSCR: 1.00
• 1% rule: 0.86%
• Cash to close: $64,400

Investor read

• This is a 2 × 2-bed/?-bath units multifamily listed at $230k.
• At list price, monthly cash flow is $0 ($-4/yr) — negative. Per door: $0/mo.
• To cash-flow at today's rent, offer at most $230k (0.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $199k (13.6% below list).
• It's been on market 183 days — a 12% lower offer ($202k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $199k (13.6% below list) — sets the bar for 1% rule.
• In year one you build about $17k of equity ($2k loan paydown + $16k appreciation (6.9% local appreciation)).
• Location reads 68/100 on livability (#486 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: schools D+, employment D, amenities F.
• Cross Plains ISD (rural): math 45% / reading 45% proficiency, ranked #581 of 1,141 in TX (top 51%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 26 active listings in the ZIP; 11 units permitted in Callahan County in 2024 (0 in 5+ unit buildings).
• Callahan County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 7y ago 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.
• At projected returns (6.9% appreciation + 3.0% rent growth), your $64k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$43k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major 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?
• It's been on market 183 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
• 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?
• 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.
• 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?