306 Wade St

Olney, TX 76374

$84,847B

5 bd · 2.0 ba · 3,457 sqft · Built 1975 · SingleFamily · Active · 381 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,457/mo
• Mortgage (P&I): −$445
• Tax + insurance: −$141
• HOA: −$0
• Vac / Maint / Mgmt: −$306
• Net cashflow: $565/mo
• Annual: $6,776/yr
• Cap rate: 14.28%
• Cash-on-cash: 28.52%
• DSCR: 2.27
• 1% rule: 1.72%
• Cash to close: $23,757

Investor read

• This is a 5-bed/2.0-bath single-family listed at $85k. Condition is rated poor.
• At list price, monthly cash flow is $565 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $85k).
• It's been on market 381 days — a 12% lower offer ($75k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $75k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-2.0%/yr); year-one equity from $586 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#557 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Olney ISD (town): math 50% / reading 56% proficiency, ranked #150 of 826 in TX (top 18%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; 60% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 29 active listings in the ZIP; 5 units permitted in Young County in 2024 (0 in 5+ unit buildings).
• Young County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts; this cycle's ask has dropped $175k (67%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-2.0% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 381 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 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: kitchen cabinets — severely dated and worn
• Major: bathroom fixtures — likely old and in need of replacement
• Major: roof — visible wear on shingles
• Major: exterior siding — appears aged and in need of repainting
• Major: flooring — carpeted areas appear worn and in need of replacement
• Major: interior walls — wallpaper and paint appear outdated and in need of updating