1505 E Main St

Velma, OK 73533

$65,000B-

3 bd · 2.0 ba · 1,700 sqft · Built 1911 · SingleFamily · Active · 14 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,140/mo
• Mortgage (P&I): −$341
• Tax + insurance: −$108
• HOA: −$0
• Vac / Maint / Mgmt: −$239
• Net cashflow: $451/mo
• Annual: $5,417/yr
• Cap rate: 14.63%
• Cash-on-cash: 29.76%
• DSCR: 2.32
• 1% rule: 1.75%
• Cash to close: $18,200

Investor read

• This is a 3-bed/2.0-bath single-family listed at $65k. Condition is rated poor.
• At list price, monthly cash flow is $451 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $65k).
• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $449 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#129 in OK) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Velma-Alma (rural): math 27% / reading 26% proficiency, ranked #84 of 270 in OK (top 31%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Velma-Alma Es (math 42% / reading 37%, grade F, #107 of 845 statewide, top 14%, 220 students, 0% FRL); Velma-Alma Ms (math 22% / reading 17%, grade F, #167 of 345 statewide, top 51%, 102 students, 0% FRL); Velma-Alma Hs (math 15% / reading 24%, grade F, #274 of 447 statewide, top 66%, 143 students, 0% FRL) — zoned schools average 0% FRL vs 34% district-wide (34 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1911 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 41 active listings in the ZIP; 17 units permitted in Stephens County in 2024 (0 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $18k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1911 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Overgrown vegetation and dirt road
• Major: interior walls — Paint peeling and walls in need of cleaning
• Major: bathrooms — Dirty and in need of cleaning
• Major: kitchen — Dirty and in need of cleaning
• Major: HVAC/mechanicals — No visible damage