3061 US Highway 70

Olton, TX 79064

$50,550B

4 bd · 1.5 ba · 1,925 sqft · Built 1960 · SingleFamily · Pending · 129 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,390/mo
• Mortgage (P&I): −$265
• Tax + insurance: −$128
• HOA: −$0
• Vac / Maint / Mgmt: −$292
• Net cashflow: $706/mo
• Annual: $8,468/yr
• Cap rate: 23.04%
• Cash-on-cash: 59.83%
• DSCR: 3.66
• 1% rule: 2.75%
• Cash to close: $14,154

Investor read

• This is a 4-bed/1.5-bath single-family listed at $51k.
• At list price, monthly cash flow is $706 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $51k).
• It's been on market 129 days — a 12% lower offer ($44k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $44k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-0.8%/yr); year-one equity from $350 of loan paydown is wiped out by about $381 of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#482 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: health & safety C-, amenities F, commute F.
• Olton ISD (rural): math 36% / reading 40% proficiency, ranked #468 of 826 in TX (top 57%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Hp Webb El (math 47% / reading 47%, grade D-, #1,006 of 4,322 statewide, top 25%, 282 students, 66% FRL); Olton J H (math 27% / reading 32%, grade F, #1,077 of 1,662 statewide, top 66%, 140 students, 74% FRL); Olton H S (math 34% / reading 44%, grade F, #821 of 1,632 statewide, top 53%, 175 students, 75% FRL) — zoned schools at 72% FRL track the district average.
• Watch-outs: property tax is 2.5% of price.
• Market conditions: 6 active listings in the ZIP.
• Lamb County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-0.8% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 129 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?
• 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.