601 Main St

Blanket, TX 76432

$28,000D+

1 bd · 1.0 ba · 760 sqft · Built 1940 · SingleFamily · Pending · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,468/mo
• Mortgage (P&I): −$147
• Tax + insurance: −$75
• HOA: −$0
• Vac / Maint / Mgmt: −$308
• Net cashflow: $938/mo
• Annual: $11,258/yr
• Cap rate: 46.50%
• Cash-on-cash: 143.60%
• DSCR: 7.39
• 1% rule: 5.24%
• Cash to close: $7,840

Investor read

• This is a 1-bed/1.0-bath single-family listed at $28k.
• At list price, monthly cash flow is $938 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $28k).
• It's been on market 16 days — a 2% lower offer ($28k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $28k (1.5% below list) — sets the bar for market timing.
• In year one you build about $785 of equity ($194 loan paydown + $591 appreciation (2.1% local appreciation)).
• Location reads 61/100 on livability (#1,023 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety D+, employment D, schools F.
• Blanket ISD (rural): math 20% / reading 35% proficiency, ranked #1,046 of 1,141 in TX (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: property tax is 2.7% of price; built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 33 active listings in the ZIP; 142 units permitted in Brown County in 2024 (0 in 5+ unit buildings).
• At projected returns (2.1% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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 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?
• 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.