274 Wildwood Trl

Holly Lake Ranch, TX 75765

$185,143D

2 bd · 3.0 ba · 1,087 sqft · Built 1996 · SingleFamily · Pending · 39 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,626/mo
• Mortgage (P&I): −$971
• Tax + insurance: −$298
• HOA: −$182
• Vac / Maint / Mgmt: −$341
• Net cashflow: $-166/mo
• Annual: $-1,996/yr
• Cap rate: 5.21%
• Cash-on-cash: -3.85%
• DSCR: 0.83
• 1% rule: 0.88%
• Cash to close: $51,840

Investor read

• This is a 2-bed/3.0-bath single-family listed at $185k.
• At list price, monthly cash flow is $-166 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $156k (15.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $163k (12.2% below list).
• It's been on market 39 days — a 3% lower offer ($180k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $156k (15.9% below list) — sets the bar for cash-flow.
• In year one you build about $7k of equity ($1k loan paydown + $6k appreciation (3.1% local appreciation)).
• Location reads 66/100 on livability (#597 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety D-.
• Harmony ISD (rural): math 48% / reading 47% proficiency, ranked #224 of 826 in TX (top 27%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Harmony El (math 52% / reading 47%, grade D, #865 of 4,322 statewide, top 21%, 313 students, 62% FRL); Harmony J H (math 45% / reading 43%, grade D, #512 of 1,662 statewide, top 32%, 258 students, 46% FRL); Harmony H S (math 37% / reading 57%, grade D-, #591 of 1,632 statewide, top 38%, 282 students, 53% FRL).
• Market conditions: 219 active listings in the ZIP; 72 units permitted in Wood County in 2024 (29 in 5+ unit buildings).
• Wood County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• By year 5, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 50% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.2% vs local median 3.8% in Holly Lake Ranch — 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?
• It's been on market 39 days. Have you received any prior offers? Is the seller open to a 16% 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?
• 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?
• 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.