Oleander Plan

Red Oak, TX 75154

$360,990D-

4 bd · 3.0 ba · 2,210 sqft · Built — · SingleFamily · Active · 329 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,156/mo
• Mortgage (P&I): −$2,046
• Tax + insurance: −$650
• HOA: −$0
• Vac / Maint / Mgmt: −$663
• Net cashflow: $-202/mo
• Annual: $-2,427/yr
• Cap rate: 5.67%
• Cash-on-cash: -2.22%
• DSCR: 0.90
• 1% rule: 0.81%
• Cash to close: $109,216

Investor read

• This is a 4-bed/3.0-bath single-family listed at $361k. Condition is rated excellent.
• At list price, monthly cash flow is $-202 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $361k (0.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $316k (12.6% below list).
• It's been on market 329 days — a 12% lower offer ($318k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $316k (12.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#435 in TX) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, cost of living A; Watch: amenities F, commute F.
• Red Oak ISD (suburban): math 40% / reading 36% proficiency, ranked #384 of 826 in TX (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Shields El (math 34% / reading 36%, grade F, #1,965 of 4,322 statewide, top 46%, 563 students, 60% FRL); Red Oak Middle (math 38% / reading 32%, grade F, #842 of 1,662 statewide, top 51%, 1,546 students, 63% FRL); Red Oak H S (math 50% / reading 50%, grade D+, #495 of 1,632 statewide, top 30%, 2,160 students, 54% FRL) — zoned schools average 59% FRL vs 42% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+3.0%/yr); 869 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 120d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 75% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 3,016 units permitted in Ellis County in 2024 (20 in 5+ unit buildings).
• Ellis County population projected at +36% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 5.7% vs local median 4.2% in Red Oak — 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.
• This rent runs 38% of the median local income ($100k/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 329 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• 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?
• 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.