406 N St Benedict

Stanton, TX 79782

$195,000C-

4 bd · 3.0 ba · 1,368 sqft · Built 2013 · SingleFamily · Pending · 69 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,699/mo
• Mortgage (P&I): −$1,023
• Tax + insurance: −$288
• HOA: −$0
• Vac / Maint / Mgmt: −$357
• Net cashflow: $32/mo
• Annual: $383/yr
• Cap rate: 6.49%
• Cash-on-cash: 0.70%
• DSCR: 1.03
• 1% rule: 0.87%
• Cash to close: $54,600

Investor read

• This is a 4-bed/3.0-bath single-family listed at $195k.
• At list price, monthly cash flow is $32 ($383/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $170k (12.9% below list).
• It's been on market 69 days — a 6% lower offer ($183k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $170k (12.9% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($1k loan paydown + $12k appreciation (6.3% local appreciation)).
• Location reads 75/100 on livability (#140 in TX, #4,008 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Stanton ISD (rural): math 40% / reading 39% proficiency, ranked #426 of 826 in TX (top 52%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Stanton El (math 43% / reading 37%, grade F, #1,514 of 4,322 statewide, top 36%, 518 students, 59% FRL); Stanton Middle (math 37% / reading 38%, grade F, #736 of 1,662 statewide, top 45%, 256 students, 54% FRL); Stanton H S (math 44% / reading 47%, grade D-, #630 of 1,632 statewide, top 39%, 307 students, 39% FRL).
• Market conditions: 39 active listings in the ZIP; 5 units permitted in Martin County in 2024 (0 in 5+ unit buildings).
• Martin County population projected at +74% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (6.3% appreciation + 3.0% rent growth), your $55k cash investment doubles in ~4 years — after that, you're playing with house money.
• 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; extreme-heat days projected 6→17/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 69 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• 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?
• 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.