0235 Red Oak Dr

Onalaska, TX 77360

$150,000F

0 bd · 2.0 ba · 216 sqft · Built 2019 · SingleFamily · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,070/mo
• Mortgage (P&I): −$787
• Tax + insurance: −$250
• HOA: −$32
• Vac / Maint / Mgmt: −$225
• Net cashflow: $-223/mo
• Annual: $-2,682/yr
• Cap rate: 4.51%
• Cash-on-cash: -6.38%
• DSCR: 0.72
• 1% rule: 0.71%
• Cash to close: $42,000

Investor read

• This is a ?-bed/2.0-bath single-family listed at $150k.
• At list price, monthly cash flow is $-223 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $118k (21.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $107k (28.7% below list).
• It's been on market 16 days — a 2% lower offer ($148k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $107k (28.7% below list) — sets the bar for 1% rule.
• In year one you build about $124 of equity ($1k loan paydown + $-913 appreciation (-0.6% local appreciation)).
• Location reads 60/100 on livability (#1,055 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, crime D+, amenities F.
• Onalaska ISD (rural): math 50% / reading 48% proficiency, ranked #213 of 826 in TX (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Onalaska El (math 52% / reading 42%, grade D-, #1,006 of 4,322 statewide, top 25%, 712 students, 70% FRL); Onalaska Jr/Sr High (math 48% / reading 55%, grade D+, #478 of 1,632 statewide, top 29%, 527 students, 58% FRL).
• Market conditions: 353 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 88% of comp listings sitting > 30 days — soft ceiling on asking rent; 769 units permitted in Polk County in 2024 (0 in 5+ unit buildings).
• Polk County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: severe wind risk, 98% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.5% vs local median 2.8% in Onalaska — 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

• 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 D 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?
• 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.
• 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.