1205 Kansas Ave S

Anahuac, TX 77514

$150,000B+

3 bd · 2.0 ba · 1,511 sqft · Built 1966 · SingleFamily · Pending · 13 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,093/mo
• Mortgage (P&I): −$787
• Tax + insurance: −$349
• HOA: −$0
• Vac / Maint / Mgmt: −$440
• Net cashflow: $518/mo
• Annual: $6,211/yr
• Cap rate: 10.43%
• Cash-on-cash: 14.79%
• DSCR: 1.66
• 1% rule: 1.40%
• Cash to close: $42,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $150k.
• At list price, monthly cash flow is $518 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $150k).
• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#365 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.
• Anahuac ISD (rural): math 41% / reading 41% proficiency, ranked #373 of 826 in TX (top 45%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Anahuac Middle (math 52% / reading 46%, grade C-, #378 of 1,662 statewide, top 23%, 326 students, 61% FRL); Anahuac H S (math 37% / reading 62%, grade D, #509 of 1,632 statewide, top 34%, 454 students, 58% FRL).
• Market conditions: 145 active listings in the ZIP; 629 units permitted in Chambers County in 2024 (0 in 5+ unit buildings).
• Chambers County population projected at +46% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $125k; 20% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $42k cash investment doubles in ~8 years — after that, you're playing with house money.
• Climate carrying-cost: moderate flood risk; severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→27/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 10.4% vs local median 3.9% in Anahuac — 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

• Built in 1966 — 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.