145 Holly Dr

Onalaska, TX 77360

$39,500A-

1 bd · 1.0 ba · 720 sqft · Built 2008 · SingleFamily · Active · 65 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $804/mo
• Mortgage (P&I): −$207
• Tax + insurance: −$66
• HOA: −$8
• Vac / Maint / Mgmt: −$169
• Net cashflow: $354/mo
• Annual: $4,248/yr
• Cap rate: 17.05%
• Cash-on-cash: 38.41%
• DSCR: 2.71
• 1% rule: 2.03%
• Cash to close: $11,060

Investor read

• This is a 1-bed/1.0-bath single-family listed at $40k.
• At list price, monthly cash flow is $354 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($804 rent vs $40k).
• It's been on market 65 days — a 6% lower offer ($37k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $37k (6.0% below list) — sets the bar for market timing.
• In year one you build about $33 of equity ($273 loan paydown + $-240 appreciation (-0.6% local appreciation)).
• Location reads 60/100 on livability (#1,055 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, crime D+, amenities F.
• Onalaska ISD (rural): math 50% / reading 48% proficiency, ranked #213 of 826 in TX (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Onalaska El (math 52% / reading 42%, grade D-, #1,006 of 4,322 statewide, top 25%, 712 students, 70% FRL); Onalaska Jr/Sr High (math 48% / reading 55%, grade D+, #478 of 1,632 statewide, top 29%, 527 students, 58% FRL).
• Market conditions: 353 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 769 units permitted in Polk County in 2024 (0 in 5+ unit buildings).
• Polk County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 2y ago; this cycle's ask has dropped $6k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-0.6% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 99% 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.
• Cap rate 17.0% vs local median 2.9% in Onalaska — 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

• It's been on market 65 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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?
• 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.
• 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.