526 Fairmont St

Port Lavaca, TX 77979

$110,000F

3 bd · 2.0 ba · 1,376 sqft · Built 1963 · SingleFamily · Active Under Contract · 105 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,051/mo
• Mortgage (P&I): −$577
• Tax + insurance: −$366
• HOA: −$0
• Vac / Maint / Mgmt: −$221
• Net cashflow: $-112/mo
• Annual: $-1,348/yr
• Cap rate: 5.07%
• Cash-on-cash: -4.38%
• DSCR: 0.81
• 1% rule: 0.96%
• Cash to close: $30,800

Investor read

• This is a 3-bed/2.0-bath single-family listed at $110k.
• At list price, monthly cash flow is $-112 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $90k (18.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $105k (4.4% below list).
• It's been on market 105 days — a 9% lower offer ($100k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $90k (18.0% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $761 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#113 in TX, #3,659 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Calhoun County ISD (town): math 44% / reading 43% proficiency, ranked #293 of 826 in TX (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Harrison/Jefferson/Madison El (math 64% / reading 57%, grade B-, #385 of 4,322 statewide, top 9%, 664 students, 69% FRL); Travis Middle (math 26% / reading 34%, grade F, #1,056 of 1,662 statewide, top 65%, 702 students, 74% FRL); Calhoun H S (math 53% / reading 38%, grade D-, #634 of 1,632 statewide, top 39%, 987 students, 51% FRL).
• Watch-outs: property tax is 3.5% of price.
• Market conditions: 284 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 95 units permitted in Calhoun County in 2024 (0 in 5+ unit buildings).
• Calhoun County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.1% vs local median 2.2% in Port Lavaca — 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

• 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 105 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Built in 1963 — 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?
• 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.
• 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.