Lots 632 & 633 Shoshone Dr

Sherwood Shores, TX 76245

$67,899C+

1 bd · 1.0 ba · 672 sqft · Built 1972 · SingleFamily · Active · 466 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $814/mo
• Mortgage (P&I): −$356
• Tax + insurance: −$113
• HOA: −$0
• Vac / Maint / Mgmt: −$171
• Net cashflow: $174/mo
• Annual: $2,084/yr
• Cap rate: 9.36%
• Cash-on-cash: 10.96%
• DSCR: 1.49
• 1% rule: 1.20%
• Cash to close: $19,012

Investor read

• This is a 1-bed/1.0-bath single-family listed at $68k. Condition is rated poor.
• At list price, monthly cash flow is $174 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($814 rent vs $68k).
• It's been on market 466 days — a 12% lower offer ($60k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $60k (12.0% below list) — sets the bar for market timing.
• In year one you build about $424 of equity ($469 loan paydown + $-45 appreciation (-0.1% local appreciation)).
• Location reads 49/100 on livability (#1,519 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Whitesboro ISD (town): math 43% / reading 46% proficiency, ranked #272 of 826 in TX (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hayes Pri (463 students, 58% FRL); Whitesboro Middle (math 45% / reading 43%, grade D, #512 of 1,662 statewide, top 32%, 408 students, 56% FRL); Whitesboro H S (math 52% / reading 57%, grade C-, #379 of 1,632 statewide, top 26%, 455 students, 47% FRL).
• Market conditions: 353 active listings in the ZIP; 2,272 units permitted in Grayson County in 2024 (750 in 5+ unit buildings).
• Grayson County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-0.1% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~7 years — after that, you're playing with house money.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.4% vs local median 2.9% in Sherwood Shores — 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

• It's been on market 466 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?
• Built in 1972 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: vegetation removal — The overgrown vegetation significantly impacts the property's appearance and usability
• Extensive: mobile home repair or demolition — The mobile home requires extensive repairs or demolition