150 Meadow Lake Dr

Gun Barrel City, TX 75156

$184,500D

2 bd · 1.0 ba · 1,008 sqft · Built 1967 · SingleFamily · Active · 63 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,402/mo
• Mortgage (P&I): −$968
• Tax + insurance: −$202
• HOA: −$11
• Vac / Maint / Mgmt: −$294
• Net cashflow: $-73/mo
• Annual: $-876/yr
• Cap rate: 5.82%
• Cash-on-cash: -1.70%
• DSCR: 0.92
• 1% rule: 0.76%
• Cash to close: $51,660

Investor read

• This is a 2-bed/1.0-bath single-family listed at $184k.
• At list price, monthly cash flow is $-73 ($-876/yr) — negative.
• To cash-flow at today's rent, offer at most $172k (7.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $140k (24.0% below list).
• It's been on market 63 days — a 6% lower offer ($173k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $140k (24.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#519 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety B+; Watch: employment D+, amenities F, commute F.
• Mabank ISD (town): math 47% / reading 44% proficiency, ranked #273 of 826 in TX (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lakeview El (math 47% / reading 47%, grade D-, #1,006 of 4,322 statewide, top 25%, 431 students, 74% FRL); Mabank Int (math 49% / reading 34%, grade F, #595 of 1,662 statewide, top 37%, 611 students, 66% FRL); Mabank H S (math 36% / reading 53%, grade F, #652 of 1,632 statewide, top 43%, 1,111 students, 57% FRL).
• Market conditions: Rents falling (-5.8%/yr); 705 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; 263 units permitted in Henderson County in 2024 (0 in 5+ unit buildings).
• 4 sale attempts since 12y ago; this cycle's ask has dropped $10k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $35k; list at $184k implies a 427% gain — meaningful room to come down on a strong offer.
• Cap rate 5.8% vs local median 3.2% in Gun Barrel City — 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 63 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1967 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.