8302 Irene St

Olivarez, TX 78596

$165,600D

3 bd · 2.0 ba · 1,696 sqft · Built 2019 · SingleFamily · Pending · 54 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,350/mo
• Mortgage (P&I): −$868
• Tax + insurance: −$422
• HOA: −$0
• Vac / Maint / Mgmt: −$284
• Net cashflow: $-224/mo
• Annual: $-2,683/yr
• Cap rate: 4.67%
• Cash-on-cash: -5.79%
• DSCR: 0.74
• 1% rule: 0.82%
• Cash to close: $46,368

Investor read

• This is a 3-bed/2.0-bath single-family listed at $166k.
• At list price, monthly cash flow is $-224 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $126k (23.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $135k (18.5% below list).
• It's been on market 54 days — a 3% lower offer ($161k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $126k (23.9% below list) — sets the bar for cash-flow.
• In year one you build about $178 of equity ($1k loan paydown + $-967 appreciation (-0.6% local appreciation)).
• Location reads 51/100 on livability (#1,480 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: employment C-, crime F, amenities F.
• Weslaco ISD (suburban): math 23% / reading 31% proficiency, ranked #705 of 826 in TX (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Raul A Gonzalez Jr El (math 17% / reading 32%, grade F, #3,052 of 4,322 statewide, top 74%, 618 students, 92% FRL); Mary Hoge Middle (math 22% / reading 42%, grade F, #971 of 1,662 statewide, top 60%, 938 students, 93% FRL); Weslaco East H S (math 24% / reading 26%, grade F, #1,250 of 1,632 statewide, top 77%, 2,004 students, 86% FRL) — zoned schools average 90% FRL vs 59% district-wide (31 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 2.6% of price.
• Market conditions: 711 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 7,378 units permitted in Hidalgo County in 2024 (641 in 5+ unit buildings).
• Hidalgo County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 7y ago; this cycle's ask has dropped $14k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• 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.

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 54 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-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 F 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?
• 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?
• 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.