849 S Gun Barrel Ln Unit F5

Gun Barrel City, TX 75156

$140,000D

2 bd · 2.0 ba · 1,100 sqft · Built 1985 · Condo · Active · 424 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,457/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$233
• HOA: −$312
• Vac / Maint / Mgmt: −$306
• Net cashflow: $-129/mo
• Annual: $-1,545/yr
• Cap rate: 5.19%
• Cash-on-cash: -3.94%
• DSCR: 0.82
• 1% rule: 1.04%
• Cash to close: $39,200

Investor read

• This is a 2-bed/2.0-bath condo listed at $140k. Condition is rated good.
• At list price, monthly cash flow is $-129 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $121k (13.3% below list).
• Meets the 1% rule at list price ($1k rent vs $140k).
• It's been on market 424 days — a 12% lower offer ($123k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $121k (13.3% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $968 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#519 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety B+; Watch: employment D+, amenities F, commute F.
• Mabank ISD (town): math 47% / reading 44% proficiency, ranked #273 of 826 in TX (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Southside El (math 37% / reading 37%, grade F, #1,769 of 4,322 statewide, top 44%, 486 students, 80% FRL); Mabank Int (math 49% / reading 34%, grade F, #595 of 1,662 statewide, top 37%, 611 students, 66% FRL); Mabank H S (math 36% / reading 53%, grade F, #652 of 1,632 statewide, top 43%, 1,111 students, 57% FRL).
• Watch-outs: HOA is 21% of rent.
• Market conditions: Rents falling (-5.8%/yr); 705 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 263 units permitted in Henderson County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts; this cycle's ask has dropped $85k (38%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 5.2% vs local median 3.2% in Gun Barrel City — 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 424 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.