10504 E Highway 62-82

Idalou, TX 79329

$36,000D+

3 bd · 2.0 ba · 1,104 sqft · Built 1925 · Other · Active · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,588/mo
• Mortgage (P&I): −$189
• Tax + insurance: −$85
• HOA: −$0
• Vac / Maint / Mgmt: −$333
• Net cashflow: $980/mo
• Annual: $11,763/yr
• Cap rate: 38.97%
• Cash-on-cash: 116.69%
• DSCR: 6.19
• 1% rule: 4.41%
• Cash to close: $10,080

Investor read

• This is a 3-bed/2.0-bath other listed at $36k.
• At list price, monthly cash flow is $980 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $36k).
• It's been on market 24 days — a 2% lower offer ($35k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $35k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $249 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#183 in TX, #4,739 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment C-, amenities F, commute F.
• Idalou ISD (rural): math 62% / reading 54% proficiency, ranked #74 of 826 in TX (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Idalou El (math 62% / reading 57%, grade B-, #409 of 4,322 statewide, top 10%, 410 students, 41% FRL); Idalou Middle (math 59% / reading 46%, grade C+, #293 of 1,662 statewide, top 18%, 300 students, 32% FRL); Idalou H S (math 77% / reading 77%, grade A-, #60 of 1,632 statewide, top 4%, 278 students, 25% FRL).
• Watch-outs: built in 1925 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 42 active listings in the ZIP; 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $10k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1925 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.
• 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.