518 Walker St · Waco, TX 76704

$109,000

2 bd · 1.0 ba · 1,064 sqft · SingleFamily public records · 433 Days on market

Built 1945 7,841 sqft lot $102/sqft · at area comps Est $107k · at est.

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Why this score? — see what drove the C+ 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 +25.7/30.0
• DSCR +8.6/10.0
• ARV discount +6.9/15.0
• 1% rule +6.7/10.0
• 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

Listing remarks MLS

This 3/1 has great potential for maximizing rental income. Property has a long-term tenant. This property can be sold as a one-off or grouped with other properties as an investment package. For further details, please ask.

Key facts

• 7,841 sq ft lot
• Built 1945
• Listed 432 days

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $109k.

Deal economics

• At list price, monthly cash flow is $261 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $109k).
• Recommended offer: $96k (12.0% below list) — sets the bar for market timing.
• Cap rate 9.2% 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; 23 comparable units currently listed for rent nearby; rentals at typical pace (median 15d 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 $1,279/mo this rent would consume 51% 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 $754 of loan paydown is wiped out by about $3k 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 433 days — a 12% lower offer ($96k) is reasonable based on typical stale-listing flexibility.
• 4 sale attempts since 6y 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.
• Current owner paid $51k; list at $109k implies a 114% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1945 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major flood risk; major wind risk, 56% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→25/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $95,920 (12.0% below list)

Questions for the listing agent

1. It's been on market 433 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1945 — 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 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: 1.17% ✓
• Cap rate: 9.17%
• Cash-on-cash: 10.28%
• DSCR: 1.46
• GRM: 7.1

CMA / ARV

• ARV (median comp): $107,452
• List price: $109,000
• Delta: 1.44%
• Verdict: FAIR
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
518 Hatton St	0.07mi	3/2.0 (+1)	1,061 (-0%)	2mo	$179,000	$169	86
625 Walker St	0.16mi	3/2.0 (+1)	1,028 (-3%)	6mo	$209,900	$204	73
325 Phillips St	0.20mi	3/1.0 (+1)	1,036 (-3%)	11mo	$129,000	$125	72
1222 Chestnut St	0.32mi	3/1.5 (+1)	1,080 (+2%)	9mo	$115,000	$106	68
504 Garrison St	0.55mi	2/1.0	1,032 (-3%)	6mo	$69,900	$68	64
604 Garrison St	0.57mi	2/1.0	960 (-10%)	0mo	$114,900	$120	57
1317 Seley St	0.43mi	3/2.0 (+1)	1,100 (+3%)	12mo	$199,900	$182	56
1130 Kellum St	0.46mi	2/2.0	926 (-13%)	4mo	$160,000	$173	50
1144 Faulkner Ln	0.64mi	3/1.0 (+1)	972 (-9%)	8mo	$162,000	$167	44
1124 Texas St	0.42mi	3/2.0 (+1)	1,216 (+14%)	6mo	$230,000	$189	42
1106 Chestnut St	0.51mi	3/1.0 (+1)	1,204 (+13%)	9mo	$165,000	$137	42
521 E Lee St	0.59mi	2/2.0	1,200 (+13%)	9mo	$139,900	$117	40

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 · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -0.9%
• Equity multiple: 0.97×
• Total profit: $-997
• Equity at exit: $16,252

10-year hold

• IRR: 8.8%
• Equity multiple: 1.68×
• Total profit: $20,638
• Equity at exit: $9,424

Cash invested: $30,520 (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: 7.1×

Monthly cashflow live

• Estimated rent: $1,279 high
• Mortgage (P&I): −$572
• Tax from tax record: −$132 /mo · $1,579/yr
• Insurance: −$45
• HOA: −$0
• Vacancy / Maint / Mgmt: −$268
• Net cashflow: $261

Break-even live

Break-even rent $948

Max offer price $109,000

Occupancy floor 75%

Sensitivity live

Price	-10% $323	-5% $292	+0% $261	+5% $231	+10% $200
Rent	-10% $160	-5% $211	+0% $261	+5% $312	+10% $362
Rate	-1.0pp $316	-0.5pp $289	base $261	+0.5pp $233	+1.0pp $204

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: $27,250
• Closing costs: $3,270
• Reserves months: —
• Total cash needed: —

Rent comps 23 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
413 Lottie St Unit B Waco, TX	3.0	2.0	872	$1,025	$1.18	14d	1	0.11mi
1319 Tabor St Waco, TX	3.0	1.5	1234	$1,700	$1.38	14d	1	0.20mi
1226 Chestnut St Unit A Waco, TX	3.0	2.0	980	$925	$0.94	22d	1	0.28mi
923 Burgan St Unit A Waco, TX	3.0	2.0	872	$1,015	$1.16	14d	1	0.28mi
925 Burgan St Unit A Waco, TX	3.0	2.0	872	$999	$1.15	14d	1	0.29mi
916 Olive St Waco, TX	3.0	2.0	1028	$1,475	$1.43	14d	1	0.34mi
1107 Chestnut St Waco, TX	2.0	1.0	928	$1,300	$1.40	22d	1	0.48mi
932 Dawson St Waco, TX	3.0	2.0	1028	$1,449	$1.41	14d	1	0.51mi
825 Garrison St Waco, TX	3.0	2.0	1028	$1,370	$1.33	14d	1	0.56mi
1013 Earle Ave Waco, TX	3.0	2.0	1028	$1,525	$1.48	22d	1	0.70mi
1008 E Pecan Ave Waco, TX	3.0	1.0	1400	$1,350	$0.96	14d	1	0.73mi
1212 J J Flewellen Rd Waco, TX	2.0	1.0	844	$1,250	$1.48	44d	1	0.73mi
804 Earle Ave Unit A Waco, TX	3.0	2.0	872	$1,035	$1.19	14d	1	0.87mi
609 Sherman St Waco, TX	3.0	2.0	1028	$1,449	$1.41	22d	1	0.94mi
1104 Sherman St Waco, TX	2.0	1.0	1120	$1,500	$1.34	44d	1	1.04mi
1403 Strickland St Waco, TX	3.0	2.0	1000	$1,399	$1.40	22d	1	1.06mi
108 Choctaw Ct Waco, TX	3.0	2.0	1273	$1,600	$1.26	14d	1	1.11mi
2017 Broadway St Waco, TX	3.0	1.0	1247	$1,800	$1.44	44d	1	1.25mi
1011 Kane St Waco, TX	3.0	2.0	1228	$1,695	$1.38	44d	1	1.27mi
507 Dunbar St Waco, TX	3.0	1.0	841	$1,550	$1.84	22d	1	1.28mi
507 Dunbar St Waco, TX	3.0	1.0	852	$1,450	$1.70	14d	1	1.28mi
1324 Cherry St Waco, TX	2.0	2.0	1200	$1,700	$1.42	14d	1	1.29mi
1130 Lewis St Waco, TX	2.0	2.0	1092	$1,450	$1.33	22d	1	1.44mi

Listing history 30 events

1. 2026-06-21
   days on market $109,000 Active 433 DOM
2. 2026-06-18
   days on market $109,000 Active 430 DOM
3. 2026-06-17
   days on market $109,000 Active 429 DOM
4. 2026-06-16
   days on market $109,000 Active 428 DOM
5. 2026-06-15
   days on market $109,000 Active 427 DOM
6. 2026-06-14
   days on market $109,000 Active 425 DOM
7. 2026-06-13
   days on market $109,000 Active 424 DOM
8. 2026-06-10
   days on market $109,000 Active 422 DOM
9. 2026-06-09
   days on market $109,000 Active 421 DOM
10. 2026-06-08
    days on market $109,000 Active 420 DOM
11. 2026-06-07
    days on market $109,000 Active 419 DOM
12. 2026-06-05
    days on market $109,000 Active 416 DOM
13. 2026-06-03
    days on market $109,000 Active 415 DOM
14. 2026-06-02
    days on market $109,000 Active 414 DOM
15. 2026-06-01
    days on market $109,000 Active 413 DOM
16. 2026-05-31
    days on market $109,000 Active 412 DOM
17. 2026-05-30
    days on market $109,000 Active 411 DOM
18. 2024-10-08
    listed $109,000 Active 222-char remark

    Show marketing remark (222 chars)

    This 3/1 has great potential for maximizing rental income. Property has a long-term tenant. This property can be sold as a one-off or grouped with other properties as an investment package. For further details, please ask.

19. 2024-03-22
    historical
20. 2023-06-20
    listed $109,000
21. 2022-09-22
    soldstatus
22. 2022-09-19
    soldstatus
23. 2022-08-18
    listed $72,500
24. 2020-09-02
    soldstatus
25. 2020-09-01
    soldstatus
26. 2020-08-09
    listed $49,900
27. 2014-04-07
    soldstatus $51,000
28. 2007-08-31
    soldstatus
29. 2005-12-22
    soldstatus
30. 2004-03-11
    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: $1,579 · $132/mo
• Projected year-2 tax: $1,995 · $166/mo
• Expected delta: +$415/yr (+$35/mo · 26.3%)

ⓘ 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 (unshaded) · 74% chance over 30 yrs
• 🔥 Wildfire 5/10 Major
• 🌡 Heat 7/10 Severe 7 d/yr ≥109°F today · 25 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: $15,343
• − Mortgage interest: −$6,106
• − Property taxes: −$1,579
• − Insurance: −$545
• − Repairs & maintenance: −$1,227
• − Management: −$1,227
• − Depreciation: −$3,171
• Taxable income: $1,487
• Est. tax owed @ 24.0%: −$357
• After-tax cash flow: $2,780/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

+113.7% since first listed

13 events — show timeline

• 2024-10-08 Listed $109,000 NTREIS
• 2024-03-22 Listing Removed — NTREIS
• 2023-06-20 Listed $109,000 NTREIS
• 2022-09-22 Sold (Public Records) — Public Records
• 2022-09-19 Sold (MLS) — NTREIS
• 2022-08-18 Listed $72,500 NTREIS
• 2020-09-02 Sold (Public Records) — Public Records
• 2020-09-01 Sold (MLS) — NTREIS
• 2020-08-09 Listed $49,900 NTREIS
• 2014-04-07 Sold (Public Records) $51,000 Public Records
• 2007-08-31 Sold (Public Records) — Public Records
• 2005-12-22 Sold (Public Records) — Public Records
• 2004-03-11 Sold (Public Records) — Public Records

Property tax history

+3.8%/yr

Latest (2025): $1,579 · -0.3% YoY. Source: county tax records.