504 Preston St · Waco, TX 76704

$178,000

2 bd · 2.5 ba · 1,742 sqft · MultiFamily public records · 87 Days on market

Built 1913 6,251 sqft lot $102/sqft · 51% above area ↓ 31% since listing

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Why this score? — see what drove the B- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• DSCR +10.0/10.0
• 1% rule +9.2/10.0
• ARV discount +7.5/15.0
• Livability +3.7/5.0
• Appreciation +2.5/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +1.8/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 1 unit. estimate disagrees with records

Listing remarks MLS

Check out this tenant-occupied gem! Enjoy a well-kept yard and privacy-fenced backyard for added appeal. Inside, modern touches shine, and with a little TLC, the potential is huge. Located just 4 minutes from downtown Waco & Baylor University—this is one you don’t want to miss!

Key facts

• 6,251 sq ft lot
• Built 1913
• Listed 86 days

What this means for you Summary

Snapshot

• This is a 2-bed/2.5-bath multifamily listed at $178k.

Deal economics

• At list price, monthly cash flow is $849 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $178k).
• Recommended offer: $167k (6.0% below list) — sets the bar for market timing.
• Cap rate 12.0% vs local median 3.9% in Waco — 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.

Location & tenants

• Location reads 74/100 on livability (#166 in TX, #4,378 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools D, crime D, commute F.
• Waco ISD (urban): math 20% / reading 24% proficiency, ranked #773 of 826 in TX (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 81% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 86 active listings in the ZIP; 13 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); lower-income renter base — watch delinquency; 1,014 units permitted in McLennan County in 2024 (200 in 5+ unit buildings).
• At $2,533/mo this rent would consume 100% of the median local household income ($30k/yr) (locally 603% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• 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.
• McLennan County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $50k cash investment doubles in ~6 years — after that, you're playing with house money.

Negotiation context

• It's been on market 87 days — a 6% lower offer ($167k) is reasonable based on typical stale-listing flexibility.
• 4 sale attempts since 2y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Risks & watch-outs

• Watch-outs: built in 1913 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major flood risk; major wind risk, 60% chance of damaging wind over 30y; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $167,320 (6.0% below list)

Questions for the listing agent

1. It's been on market 87 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1913 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. Crime grade is D 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?
7. 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.
8. 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.
9. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.42% ✓
• Cap rate: 12.02%
• Cash-on-cash: 20.44%
• DSCR: 1.91
• GRM: 5.9

CMA / ARV

• ARV (median comp): $118,011
• List price: $178,000
• Delta: 50.83%
• Verdict: OVERPRICED
• Comps: 9 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 12.7%
• Equity multiple: 1.51×
• Total profit: $25,210
• Equity at exit: $26,540

10-year hold

• IRR: 21.6%
• Equity multiple: 2.84×
• Total profit: $91,527
• Equity at exit: $15,390

Cash invested: $49,840 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Texas: 87 Strongly Landlord-Friendly · R+5
• County: — inherits STATE
• City: — inherits STATE

3-day notice; statewide preemption; one of the fastest eviction climates; Travis County (Austin) slightly slower.

Methodology + full state rankings →

ZIP-level market 76704

• Home prices YoY: -2.7%
• Active inventory: 86
• Price-to-rent: 11.7×

Monthly cashflow live

• Estimated rent: $2,533 high
• Mortgage (P&I): −$933
• Tax from tax record: −$145 /mo · $1,735/yr
• Insurance: −$74
• HOA: −$0
• Vacancy / Maint / Mgmt: −$532
• Net cashflow: $849

Break-even live

Break-even rent $1,459

Max offer price $178,000

Occupancy floor 61%

Sensitivity live

Price	-10% $950	-5% $899	+0% $849	+5% $798	+10% $748
Rent	-10% $649	-5% $749	+0% $849	+5% $949	+10% $1,049
Rate	-1.0pp $938	-0.5pp $894	base $849	+0.5pp $803	+1.0pp $756

2-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 2× units	2	1	$2,532
Total (2 units)			$2,533

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $44,500
• Closing costs: $5,340
• Reserves months: —
• Total cash needed: —

Rent comps 13 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
108 Choctaw Ct Waco, TX	3.0	2.0	1273	$1,600	$1.26	15d	1	0.27mi
1104 Sherman St Waco, TX	2.0	1.0	1120	$1,500	$1.34	45d	1	0.40mi
1008 E Pecan Ave Waco, TX	3.0	1.0	1400	$1,350	$0.96	15d	1	0.56mi
215 Washington Ave Waco, TX	1.0–4.0	1.0–4.0	919	$1,118	$1.22	22d	1	0.67mi
1319 Tabor St Waco, TX	3.0	1.5	1234	$1,700	$1.38	14d	1	0.74mi
412 Dearborn St Waco, TX	3.0	2.0	1572	$2,000	$1.27	22d	1	0.78mi
700 S 4th St Waco, TX	1.0–3.0	1.0–2.0	889	$1,288	$1.45	15d	12	1.09mi
2017 Broadway St Waco, TX	3.0	1.0	1247	$1,800	$1.44	45d	1	1.11mi
1324 Cherry St Waco, TX	2.0	2.0	1200	$1,700	$1.42	14d	1	1.27mi
1104 N 11th St Waco, TX	3.0	2.0	1231	$1,650	$1.34	22d	1	1.29mi
1110 N 11th St Waco, TX	3.0	2.0	1172	$1,495	$1.28	22d	1	1.29mi
1600 N 11th St Unit A Waco, TX	3.0	2.0	1217	$1,750	$1.44	45d	1	1.37mi
715 Cleveland Ave Waco, TX	1.0–3.0	1.0–3.0	845	$1,436	$1.70	15d	23	1.38mi

Listing history 28 events

1. 2026-06-21
   days on market $178,000 Active 87 DOM
2. 2026-06-18
   days on market $178,000 Active 84 DOM
3. 2026-06-17
   days on market $178,000 Active 83 DOM
4. 2026-06-16
   days on market $178,000 Active 82 DOM
5. 2026-06-15
   days on market $178,000 Active 81 DOM
6. 2026-06-14
   days on market $178,000 Active 79 DOM
7. 2026-06-13
   days on market $178,000 Active 78 DOM
8. 2026-06-10
   days on market $178,000 Active 76 DOM
9. 2026-06-09
   days on market $178,000 Active 75 DOM
10. 2026-06-08
    days on market $178,000 Active 74 DOM
11. 2026-06-07
    days on market $178,000 Active 73 DOM
12. 2026-06-05
    days on market $178,000 Active 70 DOM
13. 2026-06-03
    days on market $178,000 Active 69 DOM
14. 2026-06-02
    days on market $178,000 Active 68 DOM
15. 2026-06-01
    days on market $178,000 Active 67 DOM
16. 2026-05-31
    days on market $178,000 Active 66 DOM
17. 2026-05-30
    days on market $178,000 Active 65 DOM
18. 2026-03-26
    listed $178,000 Active 294-char remark

    Show marketing remark (294 chars)

    Check out this tenant-occupied gem! Enjoy a well-kept yard and privacy-fenced backyard for added appeal. Inside, modern touches shine, and with a little TLC, the potential is huge. Located just 4 minutes from downtown Waco & Baylor University—this is one you don’t want to miss!

19. 2025-12-31
    historical
20. 2025-08-01
    price $189,000
21. 2025-07-11
    price $199,999
22. 2025-06-17
    listed $210,000 Active
23. 2025-03-27
    historical
24. 2025-03-19
    historical
25. 2025-03-19
    listed $249,000
26. 2024-10-18
    listed $259,000
27. 2023-04-28
    soldstatus
28. 2020-08-19
    soldstatus

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast TX · Resets to sale price

• Current annual tax: $1,735 · $145/mo
• Projected year-2 tax: $3,257 · $271/mo
• Expected delta: +$1,522/yr (+$127/mo · 87.7%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 6/10 Major FEMA zone X (shaded) · 54% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 7/10 Severe 7 d/yr ≥109°F today · 24 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 60% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 0 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $30,396
• − Mortgage interest: −$9,971
• − Property taxes: −$1,735
• − Insurance: −$890
• − Repairs & maintenance: −$2,432
• − Management: −$2,432
• − Depreciation: −$5,178
• Taxable income: $7,758
• Est. tax owed @ 24.0%: −$1,862
• After-tax cash flow: $8,324/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Waco ISD
• NCES district ID: 4844280
• Math proficiency: 20% ▼ -14.00%
• Reading proficiency: 24% ▼ -6.00%
• Median HH income: $29,208
• Composite: 17.57/100
• National rank: #9043
• State rank: #773 of 826 in TX

Livability — Waco

• Score: 74/100
• State rank: #166
• US rank: #4378

Category grades

Amenities C Commute F Cost of living A+ Crime D Employment D- Housing A+ Health & safety A+ User ratings B-

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Waco, TX
• County: McLennan County · 213,088 people
• City population: 125,319
• Metro: Waco, TX
• Population (ZIP): 7,018
• Household income: $30,349
• Rent vs Own: 68.4% rent · 31.6% own
• Severe rent burden: 603.0

Population outlook (McLennan County) Hauer SSP2

• Today (2025): 264,191 people
• By 2030: 273,578 · +3.6%
• By 2040: 291,506 · +10.3%
• By 2050: 308,044 · +16.6%
• By 2075: 349,648 · +32.3%
• By 2100: 364,779 · +38.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (67%)
• Race & ethnicity: Black 67% Hispanic / Latino 19% Two or more races 11% White 10%
• Hispanic origin (detail): Mexican 17%
• Common ancestry: Lithuanian 2%
• Foreign-born: 6% · Canada
• Languages at home: 86% English-only · Spanish 14%

Political lean MEDSL · McLennan

• 2024 margin: Solid R (+30.9) · D 34.0% · R 64.9% · Other 1.0%
• 2008→2024 swing: -7.0pp toward R · 2008: -23.9pp · 2024: -30.9pp
• All cycles: 2024: R+30.9 2020: R+23.4 2016: R+27.1 2012: R+29.8 2008: R+23.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -5.09%
• Current HPI: 181.8051
• Rent YoY: —
• Metro: Waco, TX
• State GDP YoY: ▲ 3.95%
• F500 in state: 110

Industry mix (Fortune 500 HQ in TX)

Industry	F500 HQs	Revenue
▸Energy	16	$1,198B
▸Technology	5	$198B
▸Engineering / Construction	4	$72B
▸Energy Services	3	$60B
▸Utilities	3	$41B
▸Healthcare	2	$330B

Price history

-31.3% since first listed

11 events — show timeline

• 2026-03-26 Listed $178,000 NTREIS
• 2025-12-31 Listing Removed — NTREIS
• 2025-08-01 Price Changed $189,000 NTREIS
• 2025-07-11 Price Changed $199,999 NTREIS
• 2025-06-17 Listed $210,000 NTREIS
• 2025-03-27 Listing Removed — NTREIS
• 2025-03-19 Listed $249,000 NTREIS
• 2025-03-19 Listing Removed — NTREIS
• 2024-10-18 Listed $259,000 NTREIS
• 2023-04-28 Sold (Public Records) — Public Records
• 2020-08-19 Sold (Public Records) — Public Records

Property tax history

+10.2%/yr

Latest (2025): $1,735 · +19.6% YoY. Source: county tax records.