5606 Hawthorne Dr · Waco, TX 76710

$175,000

3 bd · 2.0 ba · 1,854 sqft · SingleFamily public records · 50 Days on market

Built 1967 8,059 sqft lot $94/sqft · 27% below area Est $241k · 27% under ↓ 8% since listing

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Why this score? — see what drove the D 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).

• ARV discount +15.0/15.0
• Cash flow +8.6/30.0
• 1% rule +4.4/10.0
• Livability +3.7/5.0
• Rent growth +3.1/5.0
• Condition / age +2.5/5.0
• DSCR +2.4/10.0
• Schools +1.8/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

Discover a fantastic investment opportunity located in the Richland Hills area! This 3-bedroom, 2-bath home is priced below market value, making it perfect for investors or buyers looking to add value. The property has been consistently rented over the past six years, offering a strong rental history and immediate income potential. Inside, you’ll find two spacious living areas, providing flexibility for entertaining or family living. The rear-entry garage adds convenience and curb appeal. Ideally located near hospitals, popular dining spots, and shopping centers, this home combines comfort, convenience, and long-term value. Whether you’re expanding your portfolio or searching for a smart buy, this property is full of potential.

Key facts

• Popular dining spots
• Rear-entry garage
• 8,059 sq ft lot

Tags

• INVESTMENT OPPORTUNITY
• STRONG RENTAL HISTORY
• IMMEDIATE INCOME POTENTIAL
• TWO SPACIOUS LIVING AREAS
• REAR-ENTRY GARAGE
• POPULAR DINING SPOTS

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $175k.

Deal economics

• At list price, monthly cash flow is $-150 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $148k (15.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $164k (6.2% below list).
• Recommended offer: $148k (15.2% below list) — sets the bar for cash-flow.
• Cap rate 5.3% 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: Rents rising (+2.4%/yr); 186 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); 1,014 units permitted in McLennan County in 2024 (200 in 5+ unit buildings).
• This rent runs 34% of the median local income ($58k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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.

Negotiation context

• It's been on market 50 days — a 3% lower offer ($170k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: property tax is 3.1% of price.
• Climate carrying-cost: major wind risk, 56% 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 $148,474 (15.2% below list)

Questions for the listing agent

1. 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?
2. It's been on market 50 days. Have you received any prior offers? Is the seller open to a 15% concession, seller financing, or rate buy-down credit?
3. Built in 1967 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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?
8. 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?
9. 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.
10. 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.
11. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 0.94% ✗
• Cap rate: 5.26%
• Cash-on-cash: -3.68%
• DSCR: 0.84
• GRM: 8.9

CMA / ARV

• ARV (median comp): $240,789
• List price: $175,000
• Delta: -27.32%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
5737 Hawthorne Dr	0.13mi	3/2.0	1,745 (-6%)	8mo	$209,000	$120	78
5825 Stratford Dr	0.20mi	3/2.5	1,764 (-5%)	4mo	$285,000	$162	77
6301 Haden Dr	0.43mi	3/2.0	1,864 (+0%)	4mo	$249,000	$134	76
805 Glasgow Dr	0.29mi	3/2.0	1,759 (-5%)	10mo	$254,000	$144	70
421 Richland Dr	0.12mi	3/2.5	2,024 (+9%)	14mo	$269,000	$133	66
537 N 60th St	0.22mi	3/2.0	1,688 (-9%)	12mo	$185,000	$110	65
601 N 60th St	0.23mi	4/2.0 (+1)	2,035 (+10%)	13mo	$215,000	$106	57
807 N 66th St	0.66mi	3/2.0	1,758 (-5%)	9mo	$275,000	$156	53
901 N 60th St	0.49mi	3/2.0	1,629 (-12%)	6mo	$320,000	$196	52
812 Kipling Dr	0.36mi	3/2.0	1,582 (-15%)	13mo	$265,000	$168	48
824 N 66th St	0.71mi	3/2.0	1,644 (-11%)	10mo	$255,000	$155	40
512 Camp Dr	0.71mi	3/2.5	1,648 (-11%)	9mo	$184,900	$112	39

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 2.41% rent growth · sell at horizon

5-year hold

• IRR: -23.1%
• Equity multiple: 0.21×
• Total profit: $-38,719
• Equity at exit: $26,093

10-year hold

• IRR: -19.4%
• Equity multiple: -0.01×
• Total profit: $-49,265
• Equity at exit: $15,131

Cash invested: $49,000 (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 76710

• Rents YoY: 2.4%
• Active inventory: 186
• Price-to-rent: 8.9×

Monthly cashflow live

• Estimated rent: $1,641 high
• Mortgage (P&I): −$918
• Tax from tax record: −$456 /mo · $5,470/yr
• Insurance: −$73
• HOA: −$0
• Vacancy / Maint / Mgmt: −$345
• Net cashflow: $-150

Break-even live

Break-even rent $1,831

Max offer price $148,474

Occupancy floor —

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: $43,750
• Closing costs: $5,250
• Reserves months: —
• Total cash needed: —

Rent comps 9 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
5714 Wilshire Dr Waco, TX	3.0	2.0	1500	$1,495	$1.00	21d	1	0.14mi
549 N 62nd St Waco, TX	4.0	2.0	1690	$1,995	$1.18	44d	1	0.30mi
6700 Old Briarstown Dr Waco, TX	2.0	2.0	1300	$1,295	$1.00	21d	1	0.74mi
6807 Alford Dr Waco, TX	3.0	2.5	1800	$1,495	$0.83	44d	1	0.77mi
901 Rambler Dr Waco, TX	3.0	2.0	1629	$1,795	$1.10	21d	1	0.93mi
1113 N New Rd Waco, TX	3.0	2.0	1326	$1,620	$1.22	21d	1	1.14mi
5025 Loch Lomond Dr Waco, TX	3.0	2.0	1611	$1,850	$1.15	21d	1	1.26mi
701 Topeka Dr Woodway, TX	3.0	2.0	1781	$2,300	$1.29	13d	1	1.31mi
5813 Fairview Dr Waco, TX	3.0	2.0	1319	$1,400	$1.06	44d	1	1.41mi

Listing history 4 events

1. 2026-05-05
   price $175,000 749-char remark

   Show marketing remark (749 chars)

   Discover a fantastic investment opportunity located in the Richland Hills area! This 3-bedroom, 2-bath home is priced below market value, making it perfect for investors or buyers looking to add value. The property has been consistently rented over the past six years, offering a strong rental history and immediate income potential. Inside, you’ll find two spacious living areas, providing flexibility for entertaining or family living. The rear-entry garage adds convenience and curb appeal. Ideally located near hospitals, popular dining spots, and shopping centers, this home combines comfort, convenience, and long-term value. Whether you’re expanding your portfolio or searching for a smart buy, this property is full of potential.

2. 2026-04-24
   price $178,900 749-char remark

   Show marketing remark (749 chars)

   Discover a fantastic investment opportunity located in the Richland Hills area! This 3-bedroom, 2-bath home is priced below market value, making it perfect for investors or buyers looking to add value. The property has been consistently rented over the past six years, offering a strong rental history and immediate income potential. Inside, you’ll find two spacious living areas, providing flexibility for entertaining or family living. The rear-entry garage adds convenience and curb appeal. Ideally located near hospitals, popular dining spots, and shopping centers, this home combines comfort, convenience, and long-term value. Whether you’re expanding your portfolio or searching for a smart buy, this property is full of potential.

3. 2026-04-01
   listed $190,000 Active 749-char remark

   Show marketing remark (749 chars)

   Discover a fantastic investment opportunity located in the Richland Hills area! This 3-bedroom, 2-bath home is priced below market value, making it perfect for investors or buyers looking to add value. The property has been consistently rented over the past six years, offering a strong rental history and immediate income potential. Inside, you’ll find two spacious living areas, providing flexibility for entertaining or family living. The rear-entry garage adds convenience and curb appeal. Ideally located near hospitals, popular dining spots, and shopping centers, this home combines comfort, convenience, and long-term value. Whether you’re expanding your portfolio or searching for a smart buy, this property is full of potential.

4. 1987-01-01
   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: $5,470 · $456/mo
• Projected year-2 tax: $5,470 · $456/mo
• Expected delta: $0/yr ($0/mo · -0.0%)

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

Climate risk First Street

• 🌊 Flood 4/10 Moderate FEMA zone X (unshaded) · 20% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 7/10 Severe 7 d/yr ≥108°F today · 24 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 56% 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: $19,691
• − Mortgage interest: −$9,803
• − Property taxes: −$5,470
• − Insurance: −$875
• − Repairs & maintenance: −$1,575
• − Management: −$1,575
• − Depreciation: −$5,091
• Taxable loss: −$4,698
• Est. tax savings @ 24.0%: +$1,128
• After-tax cash flow: $-674/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): 23,329
• Household income: $58,186
• Rent vs Own: 52.7% rent · 47.3% own
• Severe rent burden: 1202.0

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: Diverse neighborhood (Simpson 0.60)
• Race & ethnicity: White 55% Hispanic / Latino 26% Two or more races 19% Black 15%
• Hispanic origin (detail): Mexican 21% Puerto Rican 2%
• Common ancestry: Slovak 3% Lithuanian 2% Romanian 2%
• Foreign-born: 5% · Canada, China
• Languages at home: 84% English-only · Spanish 14% German/W. Germanic 1%

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: ▼ -147.65%
• Current HPI: 227.2988
• Rent YoY: ▲ 2.41%
• 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

-7.9% since first listed

4 events — show timeline

• 2026-05-05 Price Changed $175,000 NTREIS
• 2026-04-24 Price Changed $178,900 NTREIS
• 2026-04-01 Listed $190,000 NTREIS
• 1987-01-01 Sold (Public Records) — Public Records

Property tax history

+5.5%/yr

Latest (2025): $5,470 · +2.9% YoY. Source: county tax records.