840 Cherry St

Colorado City, TX 79512

$27,000C-

3 bd · 2.0 ba · 1,080 sqft · Built 2001 · Manufactured · Active · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,189/mo
• Mortgage (P&I): −$142
• Tax + insurance: −$53
• HOA: −$0
• Vac / Maint / Mgmt: −$250
• Net cashflow: $745/mo
• Annual: $8,945/yr
• Cap rate: 39.42%
• Cash-on-cash: 118.32%
• DSCR: 6.26
• 1% rule: 4.41%
• Cash to close: $7,560

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $27k.
• At list price, monthly cash flow is $745 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $27k).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $1k of equity ($187 loan paydown + $1k appreciation (4.4% local appreciation)).
• Location reads 70/100 on livability (#355 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B+; Watch: health & safety C-, amenities F, commute F.
• Colorado ISD (town): math 37% / reading 34% proficiency, ranked #508 of 826 in TX (top 62%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Colorado El And Middle (math 35% / reading 34%, grade F, #1,995 of 4,322 statewide, top 50%, 708 students, 63% FRL); Colorado H S (math 44% / reading 44%, grade F, #652 of 1,632 statewide, top 43%, 227 students, 65% FRL).
• Market conditions: 86 active listings in the ZIP.
• Mitchell County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (4.4% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• 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.