306 Hickory St

Roscoe, TX 79545

$80,000A-

3 bd · 2.0 ba · 1,443 sqft · Built 1965 · SingleFamily · Active · 87 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,195/mo
• Mortgage (P&I): −$420
• Tax + insurance: −$631
• HOA: −$0
• Vac / Maint / Mgmt: −$251
• Net cashflow: $-107/mo
• Annual: $-1,285/yr
• Cap rate: 11.08%
• Cash-on-cash: 17.11%
• DSCR: 1.76
• 1% rule: 1.49%
• Cash to close: $22,400

Investor read

• This is a 3-bed/2.0-bath single-family listed at $80k.
• At list price, monthly cash flow is $-107 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $61k (23.6% below list).
• Meets the 1% rule at list price ($1k rent vs $80k).
• It's been on market 87 days — a 6% lower offer ($75k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $61k (23.6% below list) — sets the bar for cash-flow.
• In year one you build about $7k of equity ($553 loan paydown + $7k appreciation (8.4% local appreciation)).
• Location reads 74/100 on livability (#172 in TX, #4,537 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Roscoe Collegiate ISD (rural): math 18% / reading 30% proficiency, ranked #721 of 826 in TX (top 87%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: property tax is 2.6% of price; flood insurance adds $427/mo.
• Market conditions: 14 active listings in the ZIP; 15 units permitted in Nolan County in 2024 (0 in 5+ unit buildings).
• Nolan County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts; this cycle's ask has dropped $5k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 5, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); extreme-heat days projected 4→12/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 87 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1965 — 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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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.