504 Cedar St

Sweeny, TX 77480

$126,000D

3 bd · 1.0 ba · 1,144 sqft · Built 1940 · SingleFamily · Pending · 150 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $995/mo
• Mortgage (P&I): −$661
• Tax + insurance: −$432
• HOA: −$0
• Vac / Maint / Mgmt: −$209
• Net cashflow: $-306/mo
• Annual: $-3,674/yr
• Cap rate: 4.01%
• Cash-on-cash: -8.15%
• DSCR: 0.64
• 1% rule: 0.79%
• Cash to close: $35,280

Investor read

• This is a 3-bed/1.0-bath single-family listed at $126k.
• At list price, monthly cash flow is $-306 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $75k (40.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $100k (21.0% below list).
• It's been on market 150 days — a 12% lower offer ($111k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $75k (40.5% below list) — sets the bar for cash-flow.
• In year one you build about $13k of equity ($871 loan paydown + $13k appreciation (10.0% local appreciation)).
• Location reads 71/100 on livability (#306 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities F, commute F.
• Sweeny ISD (town): math 32% / reading 40% proficiency, ranked #480 of 826 in TX (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Sweeny El (math 34% / reading 41%, grade F, #1,744 of 4,322 statewide, top 41%, 864 students, 67% FRL); Sweeny J H (math 29% / reading 36%, grade F, #947 of 1,662 statewide, top 58%, 445 students, 57% FRL); Sweeny H S (math 37% / reading 47%, grade F, #730 of 1,632 statewide, top 47%, 589 students, 51% FRL).
• Watch-outs: property tax is 3.0% of price; flood insurance adds $66/mo; built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 113 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 3,960 units permitted in Brazoria County in 2024 (593 in 5+ unit buildings).
• Brazoria County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 7 sale attempts since 3y ago 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.
• By year 3, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk; severe wind risk, 99% 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

• 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 150 days. Have you received any prior offers? Is the seller open to a 40% concession, seller financing, or rate buy-down credit?
• 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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?