112 College Ave

Oglesby, TX 76561

$119,500C-

2 bd · 1.0 ba · 986 sqft · Built 1945 · Townhouse · Active · 360 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $985/mo
• Mortgage (P&I): −$627
• Tax + insurance: −$199
• HOA: −$0
• Vac / Maint / Mgmt: −$207
• Net cashflow: $-48/mo
• Annual: $-572/yr
• Cap rate: 5.81%
• Cash-on-cash: -1.71%
• DSCR: 0.92
• 1% rule: 0.82%
• Cash to close: $33,460

Investor read

• This is a 2-bed/1.0-bath townhouse listed at $120k.
• At list price, monthly cash flow is $-48 ($-572/yr) — negative.
• To cash-flow at today's rent, offer at most $113k (5.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $98k (17.6% below list).
• It's been on market 360 days — a 12% lower offer ($105k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $98k (17.6% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($826 loan paydown + $4k appreciation (3.7% local appreciation)).
• Location reads 60/100 on livability (#1,057 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: schools F, crime F, amenities F.
• Oglesby ISD (rural): math 30% / reading 30% proficiency, ranked #992 of 1,141 in TX (top 87%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1945 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 40 active listings in the ZIP; 386 units permitted in Coryell County in 2024 (0 in 5+ unit buildings).
• 8 sale attempts; this cycle's ask has dropped $16k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (3.7% appreciation + 3.0% rent growth), your $33k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 62% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 6→19/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 360 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Built in 1945 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?
• Crime grade is F 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?
• 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.