Modern Prairie Plan

Lubbock, TX 79407

$225,950D-

4 bd · 2.0 ba · 1,600 sqft · Built — · SingleFamily · Active · 825 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,935/mo
• Mortgage (P&I): −$1,185
• Tax + insurance: −$377
• HOA: −$0
• Vac / Maint / Mgmt: −$406
• Net cashflow: $-33/mo
• Annual: $-398/yr
• Cap rate: 6.12%
• Cash-on-cash: -0.63%
• DSCR: 0.97
• 1% rule: 0.86%
• Cash to close: $63,266

Investor read

• This is a 4-bed/2.0-bath single-family listed at $226k. Condition is rated poor.
• At list price, monthly cash flow is $-33 ($-398/yr) — negative.
• To cash-flow at today's rent, offer at most $221k (2.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $193k (14.4% below list).
• It's been on market 825 days — a 12% lower offer ($199k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $193k (14.4% 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 $7k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#37 in TX, #1,749 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: employment C-, schools D+, crime F.
• Frenship ISD (urban): math 47% / reading 54% proficiency, ranked #162 of 826 in TX (top 20%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents soft (-0.1%/yr); 610 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 2,219 units permitted in Lubbock County in 2024 (252 in 5+ unit buildings).
• Lubbock County population projected at +39% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• This rent runs 38% of the median local income ($62k/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 825 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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 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?
• 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?

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Crowdsourced image shows no visible damage, but listing photos suggest a need for repair.
• Major: exterior roof — Crowdsourced image shows no visible damage, but listing photos suggest a need for repair.
• Major: exterior paint — Crowdsourced image shows no visible damage, but listing photos suggest a need for repair.
• Major: interior walls — No interior photos provided, but the exterior suggests a lack of recent maintenance.
• Major: HVAC/mechanicals — No photos of HVAC or mechanical systems provided.
• Major: landscaping — No landscaping details provided, but the exterior suggests a lack of recent maintenance.