159 Oklahoma Ave

Preston, TX 75076

$180,000D

2 bd · 2.0 ba · 924 sqft · Built 1972 · Manufactured · Active · 233 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,348/mo
• Mortgage (P&I): −$944
• Tax + insurance: −$202
• HOA: −$0
• Vac / Maint / Mgmt: −$283
• Net cashflow: $-81/mo
• Annual: $-975/yr
• Cap rate: 5.75%
• Cash-on-cash: -1.94%
• DSCR: 0.91
• 1% rule: 0.75%
• Cash to close: $50,400

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $180k.
• At list price, monthly cash flow is $-81 ($-975/yr) — negative.
• To cash-flow at today's rent, offer at most $166k (8.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $135k (25.1% below list).
• It's been on market 233 days — a 12% lower offer ($158k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $135k (25.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 56/100 on livability (#1,306 in TX) — a working-class tenant base; expect higher turnover. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D, amenities F, commute F.
• Pottsboro ISD (suburban): math 39% / reading 48% proficiency, ranked #288 of 826 in TX (top 35%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Pottsboro El (math 45% / reading 50%, grade D, #989 of 4,322 statewide, top 23%, 543 students, 41% FRL); Pottsboro Middle (math 37% / reading 43%, grade F, #646 of 1,662 statewide, top 40%, 459 students, 40% FRL); Pottsboro H S (math 37% / reading 57%, grade D-, #591 of 1,632 statewide, top 38%, 487 students, 30% FRL) — zoned schools at 37% FRL track the district average.
• Market conditions: 293 active listings in the ZIP; solid renter incomes; 2,272 units permitted in Grayson County in 2024 (750 in 5+ unit buildings).
• Grayson County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 6 sale attempts since 7y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.8% vs local median 2.9% in Preston — 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

• 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 233 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• Built in 1972 — 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 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?
• 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.