205 Calico Ln

Caddo Mills, TX 75135

$265,000D-

4 bd · 2.0 ba · 2,012 sqft · Built 2023 · SingleFamily · Active · 14 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,183/mo
• Mortgage (P&I): −$1,390
• Tax + insurance: −$761
• HOA: −$44
• Vac / Maint / Mgmt: −$459
• Net cashflow: $-469/mo
• Annual: $-5,633/yr
• Cap rate: 4.17%
• Cash-on-cash: -7.59%
• DSCR: 0.66
• 1% rule: 0.82%
• Cash to close: $74,200

Investor read

• This is a 4-bed/2.0-bath single-family listed at $265k. Condition is rated good.
• At list price, monthly cash flow is $-469 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $182k (31.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $218k (17.6% below list).
• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $182k (31.3% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#216 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Caddo Mills ISD (rural): math 59% / reading 59% proficiency, ranked #60 of 826 in TX (top 7%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Frances And Jeannette Lee El (math 63% / reading 55%, grade B-, #455 of 4,322 statewide, top 11%, 571 students, 29% FRL); Caddo Mills Middle (math 51% / reading 53%, grade C+, #301 of 1,662 statewide, top 19%, 416 students, 28% FRL); Caddo Mills H S (math 72% / reading 77%, grade B+, #82 of 1,632 statewide, top 6%, 681 students, 28% FRL) — zoned schools at 28% FRL track the district average.
• Watch-outs: property tax is 2.9% of price.
• Market conditions: 505 active listings in the ZIP; 16 comparable units currently listed for rent nearby; rentals lingering (median 64d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 75% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,289 units permitted in Hunt County in 2024 (527 in 5+ unit buildings).
• Hunt County population projected at +15% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 2y ago; this cycle's ask has dropped $35k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.

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?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.
• 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.