608 Richardson Ave

Gruver, TX 79040

$160,000D

3 bd · 2.0 ba · 1,274 sqft · Built 1957 · SingleFamily · Active · 35 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,162/mo
• Mortgage (P&I): −$839
• Tax + insurance: −$268
• HOA: −$0
• Vac / Maint / Mgmt: −$244
• Net cashflow: $-189/mo
• Annual: $-2,270/yr
• Cap rate: 4.87%
• Cash-on-cash: -5.07%
• DSCR: 0.77
• 1% rule: 0.73%
• Cash to close: $44,800

Investor read

• This is a 3-bed/2.0-bath single-family listed at $160k.
• At list price, monthly cash flow is $-189 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $127k (20.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $116k (27.4% below list).
• It's been on market 35 days — a 3% lower offer ($155k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $116k (27.4% below list) — sets the bar for 1% rule.
• In year one you build about $11k of equity ($1k loan paydown + $10k appreciation (6.0% local appreciation)).
• Location reads 65/100 on livability (#723 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities F, commute F, employment F.
• Gruver ISD (rural): math 83% / reading 64% proficiency, ranked #10 of 826 in TX (top 1%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Gruver El (math 64% / reading 54%, grade B-, #409 of 4,322 statewide, top 10%, 159 students, 55% FRL); Gruver J H (math 87% / reading 62%, grade A, #35 of 1,662 statewide, top 2%, 129 students, 42% FRL); Gruver H S (math 84% / reading 74%, grade A-, #40 of 1,632 statewide, top 3%, 153 students, 40% FRL).
• Watch-outs: built in 1957 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP.
• Hansford County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• By year 4, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 7→19/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 35 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
• Built in 1957 — 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.
• 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.