1223 Preston St · Waco, TX 76704

$45,000

1 bd · 1.0 ba · 490 sqft · SingleFamily public records · 107 Days on market

Built 1949 6,142 sqft lot $92/sqft · 22% below area Est $58k · 22% under ↓ 25% since listing

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Why this score? — see what drove the B+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• ARV discount +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Livability +3.7/5.0
• Appreciation +2.5/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +1.8/10.0

Listing remarks MLS

Investor Opportunity – Cleared and Ready to Build Excellent opportunity for investors or builders! Demolition has already been completed, and the property is cleared and ready for construction. The current owner has also taken the next step by hiring a licensed engineer—structural reports and preliminary building plans are complete and available upon request. All the prep work has been done—just bring your vision and start building. Contact the listing agent for more details and to request engineering documents.

Key facts

• 6,142 sq ft lot
• Built 1949
• Listed 107 days

Tags

• CLEARED AND READY TO BUILD
• DEMOLITION HAS BEEN COMPLETED
• STRUCTURAL REPORTS AVAILABLE

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath single-family listed at $45k.

Deal economics

• At list price, monthly cash flow is $384 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($934 rent vs $45k).
• Recommended offer: $41k (9.0% below list) — sets the bar for market timing.
• Cap rate 16.5% vs local median 3.9% in Waco — 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.

Location & tenants

• Location reads 74/100 on livability (#166 in TX, #4,378 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools D, crime D, commute F.
• Waco ISD (urban): math 20% / reading 24% proficiency, ranked #773 of 826 in TX (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 81% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 86 active listings in the ZIP; lower-income renter base — watch delinquency; 1,014 units permitted in McLennan County in 2024 (200 in 5+ unit buildings).
• This rent runs 37% of the median local income ($30k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $311 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• McLennan County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~4 years — after that, you're playing with house money.

Negotiation context

• It's been on market 107 days — a 9% lower offer ($41k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 2y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Risks & watch-outs

• Watch-outs: property tax is 2.6% of price; built in 1949 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: moderate flood risk; major wind risk, 58% chance of damaging wind over 30y; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $40,950 (9.0% below list)

Questions for the listing agent

1. It's been on market 107 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Built in 1949 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. Crime grade is D 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?
8. 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.
9. 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.
10. 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.

Investment metrics

• 1% rule: 2.08% ✓
• Cap rate: 16.53%
• Cash-on-cash: 36.57%
• DSCR: 2.63
• GRM: 4.0

CMA / ARV

• ARV (median comp): $57,811
• List price: $45,000
• Delta: -22.16%
• Verdict: UNDERPRICED
• Comps: 3 within 1.0 mi

Show comp detail 1 sale within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1217 J J Flewellen Rd	0.28mi	2/1.0 (+1)	500 (+2%)	23mo	$118,000	$236	59

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 32.4%
• Equity multiple: 2.37×
• Total profit: $17,204
• Equity at exit: $6,710

10-year hold

• IRR: 39.5%
• Equity multiple: 4.70×
• Total profit: $46,636
• Equity at exit: $3,891

Cash invested: $12,600 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Texas: 87 Strongly Landlord-Friendly · R+5
• County: — inherits STATE
• City: — inherits STATE

3-day notice; statewide preemption; one of the fastest eviction climates; Travis County (Austin) slightly slower.

Methodology + full state rankings →

ZIP-level market 76704

• Home prices YoY: -2.7%
• Active inventory: 86
• Price-to-rent: 4.0×

Monthly cashflow live

• Estimated rent: $934 medium
• Mortgage (P&I): −$236
• Tax from tax record: −$99 /mo · $1,188/yr
• Insurance: −$19
• HOA: −$0
• Vacancy / Maint / Mgmt: −$196
• Net cashflow: $384

Break-even live

Break-even rent $448

Max offer price $45,000

Occupancy floor 54%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $11,250
• Closing costs: $1,350
• Reserves months: —
• Total cash needed: —

Listing history 24 events

1. 2026-06-18
   days on market $45,000 Active 107 DOM
2. 2026-06-17
   days on market $45,000 Active 106 DOM
3. 2026-06-16
   days on market $45,000 Active 105 DOM
4. 2026-06-15
   days on market $45,000 Active 104 DOM
5. 2026-06-14
   days on market $45,000 Active 102 DOM
6. 2026-06-13
   days on market $45,000 Active 101 DOM
7. 2026-06-10
   days on market $45,000 Active 99 DOM
8. 2026-06-09
   days on market $45,000 Active 98 DOM
9. 2026-06-08
   days on market $45,000 Active 97 DOM
10. 2026-06-07
    days on market $45,000 Active 96 DOM
11. 2026-06-05
    days on market $45,000 Active 93 DOM
12. 2026-06-03
    days on market $45,000 Active 92 DOM
13. 2026-06-02
    days on market $45,000 Active 91 DOM
14. 2026-06-01
    days on market $45,000 Active 90 DOM
15. 2026-05-31
    days on market $45,000 Active 89 DOM
16. 2026-05-30
    days on market $45,000 Active 88 DOM
17. 2026-03-03
    listed $45,000 Active 542-char remark

    Show marketing remark (542 chars)

    Investor Opportunity – Cleared and Ready to Build Excellent opportunity for investors or builders! Demolition has already been completed, and the property is cleared and ready for construction. The current owner has also taken the next step by hiring a licensed engineer—structural reports and preliminary building plans are complete and available upon request. All the prep work has been done—just bring your vision and start building. Contact the listing agent for more details and to request engineering documents.

18. 2026-03-01
    historical
19. 2025-07-30
    listed $45,000 Active
20. 2025-02-05
    soldstatus
21. 2025-02-05
    soldstatus
22. 2024-10-30
    listed $59,900
23. 2020-01-17
    soldstatus
24. 2014-07-09
    soldstatus

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast TX · Resets to sale price

• Current annual tax: $1,188 · $99/mo
• Projected year-2 tax: $1,188 · $99/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 5/10 Major FEMA zone X (shaded) · 26% chance over 30 yrs
• 🔥 Wildfire 4/10 Moderate
• 🌡 Heat 7/10 Severe 7 d/yr ≥109°F today · 24 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 58% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 0 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $11,205
• − Mortgage interest: −$2,521
• − Property taxes: −$1,188
• − Insurance: −$225
• − Repairs & maintenance: −$896
• − Management: −$896
• − Depreciation: −$1,309
• Taxable income: $4,170
• Est. tax owed @ 24.0%: −$1,001
• After-tax cash flow: $3,607/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Waco ISD
• NCES district ID: 4844280
• Math proficiency: 20% ▼ -14.00%
• Reading proficiency: 24% ▼ -6.00%
• Median HH income: $29,208
• Composite: 17.57/100
• National rank: #9043
• State rank: #773 of 826 in TX

Livability — Waco

• Score: 74/100
• State rank: #166
• US rank: #4378

Category grades

Amenities C Commute F Cost of living A+ Crime D Employment D- Housing A+ Health & safety A+ User ratings B-

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Waco, TX
• County: McLennan County · 213,088 people
• City population: 125,319
• Metro: Waco, TX
• Population (ZIP): 7,018
• Household income: $30,349
• Rent vs Own: 68.4% rent · 31.6% own
• Severe rent burden: 603.0

Population outlook (McLennan County) Hauer SSP2

• Today (2025): 264,191 people
• By 2030: 273,578 · +3.6%
• By 2040: 291,506 · +10.3%
• By 2050: 308,044 · +16.6%
• By 2075: 349,648 · +32.3%
• By 2100: 364,779 · +38.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (67%)
• Race & ethnicity: Black 67% Hispanic / Latino 19% Two or more races 11% White 10%
• Hispanic origin (detail): Mexican 17%
• Common ancestry: Lithuanian 2%
• Foreign-born: 6% · Canada
• Languages at home: 86% English-only · Spanish 14%

Political lean MEDSL · McLennan

• 2024 margin: Solid R (+30.9) · D 34.0% · R 64.9% · Other 1.0%
• 2008→2024 swing: -7.0pp toward R · 2008: -23.9pp · 2024: -30.9pp
• All cycles: 2024: R+30.9 2020: R+23.4 2016: R+27.1 2012: R+29.8 2008: R+23.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -5.09%
• Current HPI: 181.8051
• Rent YoY: —
• Metro: Waco, TX
• State GDP YoY: ▲ 3.95%
• F500 in state: 110

Industry mix (Fortune 500 HQ in TX)

Industry	F500 HQs	Revenue
▸Energy	16	$1,198B
▸Technology	5	$198B
▸Engineering / Construction	4	$72B
▸Energy Services	3	$60B
▸Utilities	3	$41B
▸Healthcare	2	$330B

Price history

-24.9% since first listed

8 events — show timeline

• 2026-03-03 Listed $45,000 NTREIS
• 2026-03-01 Listing Removed — NTREIS
• 2025-07-30 Listed $45,000 NTREIS
• 2025-02-05 Sold (Public Records) — Public Records
• 2025-02-05 Sold (MLS) — NTREIS
• 2024-10-30 Listed $59,900 NTREIS
• 2020-01-17 Sold (Public Records) — Public Records
• 2014-07-09 Sold (Public Records) — Public Records

Property tax history

+7.6%/yr

Latest (2025): $1,188 · -1.0% YoY. Source: county tax records.