501 W Terrell Ave

Cooper, TX 75432

$47,000B+

3 bd · 2.0 ba · 1,954 sqft · Built 1952 · SingleFamily · Active · 164 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,176/mo
• Mortgage (P&I): −$246
• Tax + insurance: −$78
• HOA: −$0
• Vac / Maint / Mgmt: −$247
• Net cashflow: $604/mo
• Annual: $7,253/yr
• Cap rate: 21.72%
• Cash-on-cash: 55.11%
• DSCR: 3.45
• 1% rule: 2.50%
• Cash to close: $13,160

Investor read

• This is a 3-bed/2.0-bath single-family listed at $47k.
• At list price, monthly cash flow is $604 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $47k).
• It's been on market 164 days — a 12% lower offer ($41k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $41k (12.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($325 loan paydown + $3k appreciation (6.6% local appreciation)).
• Location reads 54/100 on livability (#1,394 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+, crime A-; Watch: amenities F, commute F, employment D-.
• Cooper ISD (rural): math 31% / reading 42% proficiency, ranked #497 of 826 in TX (top 60%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Cooper El (math 22% / reading 37%, grade F, #2,525 of 4,322 statewide, top 62%, 467 students, 74% FRL); Cooper J H (math 32% / reading 42%, grade F, #756 of 1,662 statewide, top 47%, 179 students, 58% FRL); Cooper H S (math 54% / reading 54%, grade C-, #379 of 1,632 statewide, top 26%, 242 students, 56% FRL) — zoned schools at 63% FRL track the district average.
• Watch-outs: built in 1952 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 93 active listings in the ZIP; 7 units permitted in Delta County in 2024 (0 in 5+ unit buildings).
• Delta County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts since 12y ago; this cycle's ask has dropped $48k (51%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (6.6% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 21.7% vs local median 3.1% in Cooper — 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

• It's been on market 164 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1952 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.