408 S Rusk St

De Leon, TX 76444

$10,000C-

2 bd · 1.0 ba · 480 sqft · Built 1920 · SingleFamily · Under Contract

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $802/mo
• Mortgage (P&I): −$52
• Tax + insurance: −$12
• HOA: −$0
• Vac / Maint / Mgmt: −$168
• Net cashflow: $569/mo
• Annual: $6,829/yr
• Cap rate: 74.59%
• Cash-on-cash: 243.90%
• DSCR: 11.85
• 1% rule: 8.02%
• Cash to close: $2,800

Investor read

• This is a 2-bed/1.0-bath single-family listed at $10k.
• At list price, monthly cash flow is $569 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($802 rent vs $10k).
• Only 0 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $957 of equity ($69 loan paydown + $888 appreciation (8.9% local appreciation)).
• Location reads 64/100 on livability (#799 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B+; Watch: schools C-, health & safety D+, amenities F.
• De Leon ISD (rural): math 46% / reading 53% proficiency, ranked #207 of 826 in TX (top 25%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 67 active listings in the ZIP; 4 units permitted in Comanche County in 2024 (0 in 5+ unit buildings).
• Comanche County population projected at -29% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 10y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (8.9% appreciation + 3.0% rent growth), your $3k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: moderate wind risk, 26% chance of damaging wind over 30y; major 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 74.6% vs local median 3.1% in De Leon — 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 1920 — 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.