800 N Summer St

Marfa, TX 79843

$374,000D

3 bd · 2.0 ba · 1,592 sqft · Built 1938 · SingleFamily · Active · 591 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,350/mo
• Mortgage (P&I): −$1,961
• Tax + insurance: −$760
• HOA: −$0
• Vac / Maint / Mgmt: −$494
• Net cashflow: $-865/mo
• Annual: $-10,379/yr
• Cap rate: 3.52%
• Cash-on-cash: -9.91%
• DSCR: 0.56
• 1% rule: 0.63%
• Cash to close: $104,720

Investor read

• This is a 3-bed/2.0-bath single-family listed at $374k.
• At list price, monthly cash flow is $-865 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $221k (40.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $235k (37.2% below list).
• It's been on market 591 days — a 12% lower offer ($329k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $221k (40.9% below list) — sets the bar for cash-flow.
• In year one you build about $18k of equity ($3k loan paydown + $16k appreciation (4.2% local appreciation)).
• Location reads 73/100 on livability (#215 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D+, schools D, commute F.
• Marfa ISD (rural): math 45% / reading 45% proficiency, ranked #559 of 1,141 in TX (top 49%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1938 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 79 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 23 units permitted in Presidio County in 2024 (0 in 5+ unit buildings).
• Presidio County population projected at -44% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 2y ago; this cycle's ask has dropped $76k (17%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 3, paydown + projected appreciation supports a ~$45k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wildfire risk — 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 591 days. Have you received any prior offers? Is the seller open to a 41% concession, seller financing, or rate buy-down credit?
• Built in 1938 — 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?
• 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.