482 W Riggs Ave

Raymondville, TX 78580

$85,000B

3 bd · 1.0 ba · 1,050 sqft · Built 1972 · SingleFamily · Pending · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $895/mo
• Mortgage (P&I): −$446
• Tax + insurance: −$263
• HOA: −$0
• Vac / Maint / Mgmt: −$188
• Net cashflow: $-1/mo
• Annual: $-17/yr
• Cap rate: 8.42%
• Cash-on-cash: 7.59%
• DSCR: 1.34
• 1% rule: 1.05%
• Cash to close: $23,800

Investor read

• This is a 3-bed/1.0-bath single-family listed at $85k.
• At list price, monthly cash flow is $-1 ($-17/yr) — negative.
• To cash-flow at today's rent, offer at most $85k (0.3% below list).
• Meets the 1% rule at list price ($895 rent vs $85k).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $85k (0.3% below list) — sets the bar for cash-flow.
• In year one you build about $7k of equity ($588 loan paydown + $7k appreciation (8.0% local appreciation)).
• Location reads 57/100 on livability (#1,266 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Raymondville ISD (town): math 28% / reading 37% proficiency, ranked #610 of 826 in TX (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 65% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Pittman El (math 37% / reading 42%, grade F, #1,545 of 4,322 statewide, top 38%, 579 students, 86% FRL); Myra Green Middle (math 29% / reading 33%, grade F, #1,015 of 1,662 statewide, top 62%, 425 students, 90% FRL); Raymondville H S (math 17% / reading 42%, grade F, #1,112 of 1,632 statewide, top 70%, 508 students, 82% FRL) — zoned schools average 86% FRL vs 65% district-wide (22 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $152/mo.
• Market conditions: 58 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 36 units permitted in Willacy County in 2024 (0 in 5+ unit buildings).
• Willacy County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (8.0% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AH (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→24/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?
• Built in 1972 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.