1620 Wellington Place, Unit 701 Pl

Beaumont, TX 77706

$115,000F

1 bd · 1.5 ba · 1,127 sqft · Built 1988 · Condo · Active · 244 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,267/mo
• Mortgage (P&I): −$603
• Tax + insurance: −$345
• HOA: −$300
• Vac / Maint / Mgmt: −$266
• Net cashflow: $-247/mo
• Annual: $-2,962/yr
• Cap rate: 4.41%
• Cash-on-cash: -6.72%
• DSCR: 0.70
• 1% rule: 1.10%
• Cash to close: $32,200

Investor read

• This is a 1-bed/1.5-bath condo listed at $115k.
• At list price, monthly cash flow is $-247 ($-3k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $115k).
• It's been on market 244 days — a 12% lower offer ($101k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $101k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $795 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#739 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, crime F, amenities F.
• Beaumont ISD (urban): math 14% / reading 22% proficiency, ranked #789 of 826 in TX (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Regina Howell El (math 33% / reading 44%, grade F, #1,680 of 4,322 statewide, top 40%, 682 students, 58% FRL); Marshall Middle (math 17% / reading 25%, grade F, #1,387 of 1,662 statewide, top 85%, 711 students, 62% FRL); West Brook Sr H S (math 19% / reading 34%, grade F, #1,228 of 1,632 statewide, top 76%, 2,245 students, 58% FRL).
• Watch-outs: flood insurance adds $66/mo; HOA is 24% of rent.
• Market conditions: Rents flat; 259 active listings in the ZIP; 17 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 41% of comp listings sitting > 30 days — soft ceiling on asking rent; 343 units permitted in Jefferson County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts since 9y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: major flood risk; severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 6→21/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 244 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?