22105 Harry St

Edcouch, TX 78538

$75,000C

3 bd · 1.0 ba · 924 sqft · Built 2010 · Manufactured · Active · 365 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $840/mo
• Mortgage (P&I): −$393
• Tax + insurance: −$193
• HOA: −$0
• Vac / Maint / Mgmt: −$176
• Net cashflow: $78/mo
• Annual: $936/yr
• Cap rate: 7.54%
• Cash-on-cash: 4.46%
• DSCR: 1.20
• 1% rule: 1.12%
• Cash to close: $21,000

Investor read

• This is a 3-bed/1.0-bath manufactured listed at $75k. Condition is rated poor.
• At list price, monthly cash flow is $78 ($936/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($840 rent vs $75k).
• It's been on market 365 days — a 12% lower offer ($66k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $66k (12.0% below list) — sets the bar for market timing.
• In year one you build about $6k of equity ($519 loan paydown + $6k appreciation (7.8% local appreciation)).
• Location reads 69/100 on livability (#413 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Monte Alto ISD (rural): math 16% / reading 26% proficiency, ranked #777 of 826 in TX (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 79% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Roberto Garate El (math 27% / reading 27%, grade F, #2,791 of 4,322 statewide, top 68%, 384 students, 92% FRL); Jose Borrego Middle (math 12% / reading 32%, grade F, #1,360 of 1,662 statewide, top 83%, 186 students, 90% FRL); Monte Alto H S (math 2% / reading 17%, grade F, #1,591 of 1,632 statewide, top 98%, 295 students, 91% FRL).
• Watch-outs: property tax is 2.6% of price.
• Market conditions: 144 active listings in the ZIP; 7,378 units permitted in Hidalgo County in 2024 (641 in 5+ unit buildings).
• Hidalgo County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 2y 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.
• At projected returns (7.8% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 6, 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 wind risk, 99% chance of damaging wind over 30y; 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

• It's been on market 365 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: exterior paint — Painted walls show significant wear
• Major: flooring — Worn linoleum flooring needs replacement
• Major: kitchen appliances — Outdated appliances need replacement
• Major: bathroom fixtures — Basic fixtures need updating
• Major: exterior siding — Red mobile home needs repainting