405 Brown Ave

Stinnett, TX 79083

$70,000B

2 bd · 1.0 ba · 1,025 sqft · Built 1950 · SingleFamily · Active · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $934/mo
• Mortgage (P&I): −$367
• Tax + insurance: −$161
• HOA: −$0
• Vac / Maint / Mgmt: −$196
• Net cashflow: $211/mo
• Annual: $2,527/yr
• Cap rate: 9.90%
• Cash-on-cash: 12.89%
• DSCR: 1.57
• 1% rule: 1.33%
• Cash to close: $19,600

Investor read

• This is a 2-bed/1.0-bath single-family listed at $70k.
• At list price, monthly cash flow is $211 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($934 rent vs $70k).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $1k of equity ($484 loan paydown + $879 appreciation (1.3% local appreciation)).
• Location reads 67/100 on livability (#556 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: employment C-, amenities F, commute F.
• Plemons-Stinnett-Phillips CISD (rural): math 38% / reading 44% proficiency, ranked #377 of 826 in TX (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: West Texas El (math 42% / reading 47%, grade F, #1,155 of 4,322 statewide, top 29%, 265 students, 48% FRL); West Texas Middle (math 37% / reading 42%); West Texas Secondary School (math 32% / reading 44%, grade F, #876 of 1,632 statewide, top 54%, 308 students, 31% FRL) — zoned schools at 40% FRL track the district average.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 14 active listings in the ZIP; 2 units permitted in Hutchinson County in 2024 (0 in 5+ unit buildings).
• 4 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.
• At projected returns (1.3% appreciation + 3.0% rent growth), your $20k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.