1206 Brady Ave

Brownwood, TX 76801

$6,500D

2 bd · 1.0 ba · 1,450 sqft · Built 1985 · SingleFamily · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,068/mo
• Mortgage (P&I): −$34
• Tax + insurance: −$11
• HOA: −$0
• Vac / Maint / Mgmt: −$224
• Net cashflow: $799/mo
• Annual: $9,586/yr
• Cap rate: 153.78%
• Cash-on-cash: 526.73%
• DSCR: 24.44
• 1% rule: 16.43%
• Cash to close: $1,820

Investor read

• This is a 2-bed/1.0-bath single-family listed at $6k.
• At list price, monthly cash flow is $799 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $6k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $45 of loan paydown is wiped out by about $195 of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#781 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D+, health & safety D+, amenities F.
• Brownwood ISD (town): math 45% / reading 41% proficiency, ranked #344 of 826 in TX (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Coggin El (math 45% / reading 34%, grade F, #1,545 of 4,322 statewide, top 38%, 708 students, 79% FRL) — zoned schools average 79% FRL vs 54% district-wide (25 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 377 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 142 units permitted in Brown County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts since 11y ago; this cycle's ask has dropped $28k (81%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $2k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: moderate flood risk; major wind risk, 27% chance of damaging wind over 30y; 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.
• Cap rate 153.8% vs local median 3.7% in Brownwood — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-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 D 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?
• 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.