112 N Jefferson St

Bronte, TX 76933

$132,500D

3 bd · 1.0 ba · 1,274 sqft · Built 1950 · SingleFamily · Active · 94 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $808/mo
• Mortgage (P&I): −$695
• Tax + insurance: −$114
• HOA: −$0
• Vac / Maint / Mgmt: −$170
• Net cashflow: $-170/mo
• Annual: $-2,043/yr
• Cap rate: 4.75%
• Cash-on-cash: -5.51%
• DSCR: 0.76
• 1% rule: 0.61%
• Cash to close: $37,100

Investor read

• This is a 3-bed/1.0-bath single-family listed at $132k.
• At list price, monthly cash flow is $-170 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $102k (22.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $81k (39.0% below list).
• It's been on market 94 days — a 9% lower offer ($121k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $81k (39.0% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($916 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 68/100 on livability (#506 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A, crime A-; Watch: health & safety C-, schools D+, amenities F.
• Bronte ISD (rural): math 45% / reading 50% proficiency, ranked #473 of 1,141 in TX (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 25 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); 3 units permitted in Coke County in 2024 (0 in 5+ unit buildings).
• Coke County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• By year 7, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→22/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 94 days. Have you received any prior offers? Is the seller open to a 39% concession, seller financing, or rate buy-down credit?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.