559 Elm St

Frankston, TX 75763

$245,000D

3 bd · 2.0 ba · 2,371 sqft · Built — · SingleFamily · Active · 50 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,417/mo
• Mortgage (P&I): −$1,285
• Tax + insurance: −$470
• HOA: −$0
• Vac / Maint / Mgmt: −$297
• Net cashflow: $-635/mo
• Annual: $-7,625/yr
• Cap rate: 3.18%
• Cash-on-cash: -11.11%
• DSCR: 0.51
• 1% rule: 0.58%
• Cash to close: $68,600

Investor read

• This is a 3-bed/2.0-bath single-family listed at $245k.
• At list price, monthly cash flow is $-635 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $133k (45.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $142k (42.2% below list).
• It's been on market 50 days — a 3% lower offer ($238k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $133k (45.8% below list) — sets the bar for cash-flow.
• In year one you build about $26k of equity ($2k loan paydown + $24k appreciation (10.0% local appreciation)).
• Location reads 62/100 on livability (#918 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+; Watch: employment D+, amenities F, commute F.
• Frankston ISD (rural): math 54% / reading 49% proficiency, ranked #155 of 826 in TX (top 19%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Frankston El (math 57% / reading 52%, grade C, #621 of 4,322 statewide, top 15%, 373 students, 63% FRL); Frankston Middle (math 57% / reading 42%, grade C, #356 of 1,662 statewide, top 23%, 184 students, 62% FRL); Frankston H S (math 24% / reading 62%, grade F, #708 of 1,632 statewide, top 44%, 245 students, 50% FRL).
• Market conditions: 191 active listings in the ZIP; 29 units permitted in Anderson County in 2024 (0 in 5+ unit buildings).
• Anderson County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• By year 2, paydown + projected appreciation supports a ~$42k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 67% chance of damaging wind over 30y; extreme-heat days projected 7→26/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 50 days. Have you received any prior offers? Is the seller open to a 46% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.