1919 County Road 344 Loop

Milano, TX 76556

$109,900B

4 bd · 2.0 ba · 1,676 sqft · Built 1990 · Manufactured · Pending · 100 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,373/mo
• Mortgage (P&I): −$576
• Tax + insurance: −$80
• HOA: −$0
• Vac / Maint / Mgmt: −$288
• Net cashflow: $429/mo
• Annual: $5,146/yr
• Cap rate: 10.98%
• Cash-on-cash: 16.72%
• DSCR: 1.74
• 1% rule: 1.25%
• Cash to close: $30,772

Investor read

• This is a 4-bed/2.0-bath manufactured listed at $110k.
• At list price, monthly cash flow is $429 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $110k).
• It's been on market 100 days — a 9% lower offer ($100k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $100k (9.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($760 loan paydown + $2k appreciation (2.0% local appreciation)).
• Location reads 59/100 on livability (#1,122 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, employment B; Watch: crime F, amenities F, commute F.
• Milano ISD (rural): math 55% / reading 48% proficiency, ranked #334 of 1,141 in TX (top 29%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Milano El (math 57% / reading 47%, grade C-, #742 of 4,322 statewide, top 19%, 181 students, 56% FRL); Milano J H (math 52% / reading 52%, grade C+, #301 of 1,662 statewide, top 19%, 71 students, 54% FRL); Milano H S (math 64% / reading 64%, grade B-, #199 of 1,632 statewide, top 14%, 151 students, 49% FRL) — zoned schools at 53% FRL track the district average.
• Market conditions: 44 active listings in the ZIP; 77 units permitted in Milam County in 2024 (0 in 5+ unit buildings).
• Milam County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 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.
• Current owner paid $18k; list at $110k implies a 511% gain — meaningful room to come down on a strong offer.
• At projected returns (2.0% appreciation + 3.0% rent growth), your $31k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: moderate flood risk; 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.

Questions for listing agent

• It's been on market 100 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• 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?
• Crime grade is F 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?
• 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.