724 Rocky Ridge Flatts Rd

Oak Ridge, TX 76240

$165,000D

2 bd · 1.0 ba · 1,656 sqft · Built 2015 · SingleFamily · Active · 204 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,437/mo
• Mortgage (P&I): −$865
• Tax + insurance: −$419
• HOA: −$0
• Vac / Maint / Mgmt: −$302
• Net cashflow: $-149/mo
• Annual: $-1,790/yr
• Cap rate: 5.21%
• Cash-on-cash: -3.88%
• DSCR: 0.83
• 1% rule: 0.87%
• Cash to close: $46,200

Investor read

• This is a 2-bed/1.0-bath single-family listed at $165k.
• At list price, monthly cash flow is $-149 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $139k (16.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $144k (12.9% below list).
• It's been on market 204 days — a 12% lower offer ($145k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $139k (16.0% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#900 in TX) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Callisburg ISD (rural): math 39% / reading 48% proficiency, ranked #266 of 826 in TX (top 32%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Callisburg El (math 42% / reading 44%, grade F, #1,283 of 4,322 statewide, top 30%, 549 students, 50% FRL); Callisburg Middle (math 36% / reading 46%, grade F, #613 of 1,662 statewide, top 38%, 256 students, 43% FRL); Callisburg H S (math 37% / reading 67%, grade D+, #447 of 1,632 statewide, top 29%, 355 students, 37% FRL) — zoned schools at 43% FRL track the district average.
• Watch-outs: property tax is 2.5% of price.
• Market conditions: 461 active listings in the ZIP; 190 units permitted in Cooke County in 2024 (0 in 5+ unit buildings).
• 3 sale attempts; this cycle's ask is 14900% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.2% vs local median 2.6% in Oak Ridge — 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.

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 204 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• 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?
• 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.