Oak Plan

Terrell, TX 75160

$299,990F

4 bd · 2.5 ba · 1,872 sqft · Built — · SingleFamily · Active · 60 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,319/mo
• Mortgage (P&I): −$1,615
• Tax + insurance: −$513
• HOA: −$0
• Vac / Maint / Mgmt: −$487
• Net cashflow: $-297/mo
• Annual: $-3,561/yr
• Cap rate: 5.14%
• Cash-on-cash: -4.13%
• DSCR: 0.82
• 1% rule: 0.75%
• Cash to close: $86,246

Investor read

• This is a 4-bed/2.5-bath single-family listed at $300k. Condition is rated good.
• At list price, monthly cash flow is $-297 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $265k (11.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $232k (22.7% below list).
• It's been on market 60 days — a 3% lower offer ($291k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $232k (22.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#520 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities C-, employment D, commute F.
• Terrell ISD (town): math 25% / reading 30% proficiency, ranked #677 of 826 in TX (top 82%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: W H Burnett El (329 students, 79% FRL); Herman Furlough Jr Middle (math 28% / reading 28%, grade F, #1,143 of 1,662 statewide, top 69%, 1,168 students, 64% FRL); Terrell H S (math 24% / reading 38%, grade F, #1,077 of 1,632 statewide, top 66%, 1,466 students, 56% FRL) — zoned schools at 67% FRL track the district average.
• Market conditions: 635 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 1,747 units permitted in Kaufman County in 2024 (180 in 5+ unit buildings).
• Kaufman County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 5.1% vs local median 4.0% in Terrell — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• This rent runs 39% of the median local income ($72k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 60 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-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.
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.