1606 Richards St

Paducah, TX 79248

$132,500D

2 bd · 1.0 ba · 1,666 sqft · Built 1900 · SingleFamily · Active · 35 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,070/mo
• Mortgage (P&I): −$695
• Tax + insurance: −$200
• HOA: −$0
• Vac / Maint / Mgmt: −$225
• Net cashflow: $-50/mo
• Annual: $-594/yr
• Cap rate: 5.84%
• Cash-on-cash: -1.60%
• DSCR: 0.93
• 1% rule: 0.81%
• Cash to close: $37,100

Investor read

• This is a 2-bed/1.0-bath single-family listed at $132k.
• At list price, monthly cash flow is $-50 ($-594/yr) — negative.
• To cash-flow at today's rent, offer at most $124k (6.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $107k (19.2% below list).
• It's been on market 35 days — a 3% lower offer ($129k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $107k (19.2% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($916 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 64/100 on livability (#740 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: health & safety C-, schools F, amenities F.
• Paducah ISD (rural): math 50% / reading 30% proficiency, ranked #766 of 1,141 in TX (top 67%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 64% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 12 active listings in the ZIP.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $37k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wildfire risk; 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

• 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 35 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Built in 1900 — 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 F-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.