110 N Cotton Belt Ave

Gustine, TX 76455

$47,529B+

3 bd · 2.0 ba · 962 sqft · Built 1920 · SingleFamily · Active · 411 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,016/mo
• Mortgage (P&I): −$249
• Tax + insurance: −$43
• HOA: −$0
• Vac / Maint / Mgmt: −$213
• Net cashflow: $511/mo
• Annual: $6,130/yr
• Cap rate: 19.19%
• Cash-on-cash: 46.07%
• DSCR: 3.05
• 1% rule: 2.14%
• Cash to close: $13,308

Investor read

• This is a 3-bed/2.0-bath single-family listed at $48k.
• At list price, monthly cash flow is $511 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $48k).
• It's been on market 411 days — a 12% lower offer ($42k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $42k (12.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($329 loan paydown + $2k appreciation (3.6% local appreciation)).
• Location reads 59/100 on livability (#1,143 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A; Watch: employment D+, health & safety D+, schools D-.
• Gustine ISD (rural): math 45% / reading 35% proficiency, ranked #730 of 1,141 in TX (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 34 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.
• Current owner paid $6k; list at $48k implies a 762% gain — meaningful room to come down on a strong offer.
• At projected returns (3.6% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~2 years — after that, you're playing with house money.
• 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.

Questions for listing agent

• It's been on market 411 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1920 — 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.