The Cypress Plan

Winnsboro, TX 75480

$208,000F

1 bd · 1.5 ba · 1,600 sqft · Built — · SingleFamily · Active · 954 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,025/mo
• Mortgage (P&I): −$3,559
• Tax + insurance: −$1,131
• HOA: −$0
• Vac / Maint / Mgmt: −$425
• Net cashflow: $-3,090/mo
• Annual: $-37,079/yr
• Cap rate: 0.83%
• Cash-on-cash: -19.51%
• DSCR: 0.13
• 1% rule: 0.30%
• Cash to close: $190,013

Investor read

• This is a 1-bed/1.5-bath single-family listed at $208k. Condition is rated poor.
• At list price, monthly cash flow is $-3k ($-37k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $203k (2.6% below list).
• It's been on market 954 days — a 12% lower offer ($183k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $183k (12.0% below list) — sets the bar for market timing.
• In year one you build about $39k of equity ($5k loan paydown + $35k appreciation (5.1% local appreciation)).
• Location reads 69/100 on livability (#416 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: employment D+, amenities F, commute F.
• Mount Vernon ISD (town): math 49% / reading 43% proficiency, ranked #251 of 826 in TX (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: property tax is 4.9% of price.
• Market conditions: 96 active listings in the ZIP; 7 units permitted in Franklin County in 2024 (0 in 5+ unit buildings).
• By year 2, paydown + projected appreciation supports a ~$63k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 0.8% vs local median 3.8% in Winnsboro — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 954 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?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: Kitchen countertops and cabinets — The countertops and cabinets are visibly worn and need replacement.
• Major: Bathroom fixtures and tiles — The fixtures and tiles are outdated and stained, requiring replacement.
• Major: Roof — The roof shows significant damage and discoloration, indicating potential leaks and structural issues.
• Major: Exterior siding — The siding is peeling and shows significant wear, requiring replacement.
• Major: Flooring — The carpeted flooring is worn and needs replacement.
• Major: Interior walls — The walls show signs of peeling paint and potential water damage, requiring repainting and possibly repairs.