3199 US Hwy 259 N

Ore City, TX 75640

$199,000D

3 bd · 2.0 ba · 1,838 sqft · Built 1973 · SingleFamily · Active · 64 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,484/mo
• Mortgage (P&I): −$1,044
• Tax + insurance: −$571
• HOA: −$0
• Vac / Maint / Mgmt: −$312
• Net cashflow: $-442/mo
• Annual: $-5,304/yr
• Cap rate: 3.63%
• Cash-on-cash: -9.52%
• DSCR: 0.58
• 1% rule: 0.75%
• Cash to close: $55,720

Investor read

• This is a 3-bed/2.0-bath single-family listed at $199k.
• At list price, monthly cash flow is $-442 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $121k (39.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $148k (25.4% below list).
• It's been on market 64 days — a 6% lower offer ($187k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $121k (39.2% below list) — sets the bar for cash-flow.
• In year one you build about $7k of equity ($1k loan paydown + $6k appreciation (2.9% local appreciation)).
• Location reads 67/100 on livability (#568 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• New Diana ISD (rural): math 49% / reading 58% proficiency, ranked #122 of 826 in TX (top 15%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Robert F Hunt El (math 61% / reading 62%, grade B, #355 of 4,322 statewide, top 8%, 574 students, 43% FRL); New Diana Middle (math 41% / reading 55%, grade C-, #400 of 1,662 statewide, top 24%, 282 students, 43% FRL); New Diana H S (math 27% / reading 52%, grade F, #821 of 1,632 statewide, top 53%, 330 students, 41% FRL) — zoned schools at 42% FRL track the district average.
• Watch-outs: property tax is 2.9% of price.
• Market conditions: 98 active listings in the ZIP; 34 units permitted in Upshur County in 2024 (0 in 5+ unit buildings).
• Upshur County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• By year 5, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 40% 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.

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 64 days. Have you received any prior offers? Is the seller open to a 39% concession, seller financing, or rate buy-down credit?
• Built in 1973 — 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?
• 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.
• 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.