6423 Wellington Oak Ave

Tyler, TX 75706

$299,900D

3 bd · 2.0 ba · 1,620 sqft · Built 2026 · Other · Active · 125 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,646/mo
• Mortgage (P&I): −$1,573
• Tax + insurance: −$500
• HOA: −$21
• Vac / Maint / Mgmt: −$346
• Net cashflow: $-794/mo
• Annual: $-9,523/yr
• Cap rate: 3.12%
• Cash-on-cash: -11.34%
• DSCR: 0.50
• 1% rule: 0.55%
• Cash to close: $83,972

Investor read

• This is a 3-bed/2.0-bath other listed at $300k.
• At list price, monthly cash flow is $-794 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $185k (38.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $165k (45.1% below list).
• It's been on market 125 days — a 12% lower offer ($264k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $165k (45.1% below list) — sets the bar for 1% rule.
• In year one you build about $22k of equity ($2k loan paydown + $20k appreciation (6.7% local appreciation)).
• Location reads 75/100 on livability (#147 in TX, #4,181 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment C-, crime D+, commute F.
• Lindale ISD (town): math 71% / reading 66% proficiency, ranked #20 of 826 in TX (top 2%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Velma Penny El (math 67% / reading 67%, grade B+, #199 of 4,322 statewide, top 5%, 541 students, 48% FRL); E J Moss Int (math 66% / reading 59%, grade B+, #128 of 1,662 statewide, top 8%, 981 students, 45% FRL); Lindale H S (math 79% / reading 75%, grade A-, #60 of 1,632 statewide, top 4%, 1,265 students, 38% FRL).
• Market conditions: 110 active listings in the ZIP; 595 units permitted in Smith County in 2024 (45 in 5+ unit buildings).
• Smith County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts 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.
• By year 2, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 125 days. Have you received any prior offers? Is the seller open to a 45% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 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?