BLAKE Plan

Crandall, TX 75114

$183,990F

2 bd · 1.0 ba · 816 sqft · Built — · SingleFamily · Active · 304 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,597/mo
• Mortgage (P&I): −$1,368
• Tax + insurance: −$435
• HOA: −$0
• Vac / Maint / Mgmt: −$335
• Net cashflow: $-542/mo
• Annual: $-6,502/yr
• Cap rate: 3.80%
• Cash-on-cash: -8.90%
• DSCR: 0.60
• 1% rule: 0.61%
• Cash to close: $73,067

Investor read

• This is a 2-bed/1.0-bath single-family listed at $184k. Condition is rated excellent.
• At list price, monthly cash flow is $-542 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $183k (0.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $160k (13.2% below list).
• It's been on market 304 days — a 12% lower offer ($162k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $160k (13.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#507 in TX) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Crandall ISD (rural): math 36% / reading 42% proficiency, ranked #351 of 826 in TX (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Nola Kathryn Wilson El (math 40% / reading 45%, grade F, #1,313 of 4,322 statewide, top 31%, 596 students, 59% FRL); Crandall Middle (math 38% / reading 42%, grade F, #646 of 1,662 statewide, top 40%, 983 students, 60% FRL); Crandall H S (math 33% / reading 53%, grade F, #713 of 1,632 statewide, top 44%, 1,707 students, 56% FRL) — zoned schools average 58% FRL vs 41% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 956 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 28d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,747 units permitted in Kaufman County in 2024 (180 in 5+ unit buildings).
• Kaufman County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→25/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.8% vs local median 5.2% in Crandall — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 304 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.