112 Martin Luther King Jr Blvd

Lufkin, TX 75904

$35,000B

3 bd · 1.0 ba · 1,224 sqft · Built 1940 · SingleFamily · Active · 214 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,237/mo
• Mortgage (P&I): −$184
• Tax + insurance: −$178
• HOA: −$0
• Vac / Maint / Mgmt: −$260
• Net cashflow: $616/mo
• Annual: $7,392/yr
• Cap rate: 29.69%
• Cash-on-cash: 83.56%
• DSCR: 4.72
• 1% rule: 3.53%
• Cash to close: $9,800

Investor read

• This is a 3-bed/1.0-bath single-family listed at $35k. Condition is rated fair.
• At list price, monthly cash flow is $616 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $35k).
• It's been on market 214 days — a 12% lower offer ($31k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $31k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $242 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#240 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, commute F, employment D-.
• Lufkin ISD (town): math 39% / reading 39% proficiency, ranked #446 of 826 in TX (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Brandon El (math 48% / reading 50%, grade D, #926 of 4,322 statewide, top 22%, 394 students, 71% FRL); Lufkin Middle (math 38% / reading 38%, grade F, #717 of 1,662 statewide, top 44%, 1,487 students, 89% FRL); Lufkin H S (math 49% / reading 45%, grade D-, #591 of 1,632 statewide, top 38%, 2,135 students, 85% FRL).
• Watch-outs: property tax is 3.3% of price; flood insurance adds $66/mo; built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 424 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals leasing fast (median 6d on market — plan ~1-2 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; 120 units permitted in Angelina County in 2024 (0 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $10k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk; severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→25/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 29.7% vs local median 3.4% in Lufkin — 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 214 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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?

Repairs flagged (vision-AI assessment)

• Major: roof — The roof appears to be in poor condition, with visible damage and potential leaks.
• Major: exterior siding — The exterior siding is peeling and in need of repainting.
• Major: flooring — The flooring in the interior appears to be in poor condition, with visible wear and tear.
• Major: interior walls/paint — The interior walls and paint appear to be in poor condition, with peeling paint and potential damage.
• Major: landscaping — The landscaping and curb appeal are poor, with overgrown vegetation and a lack of maintenance.
• Major: HVAC system — The HVAC system appears to be in poor condition, with visible damage and potential issues.