585 River Oaks Dr

Riverside, TX 75862

$105,000C+

2 bd · 2.0 ba · 1,102 sqft · Built 1980 · SingleFamily · Active · 457 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,176/mo
• Mortgage (P&I): −$551
• Tax + insurance: −$175
• HOA: −$0
• Vac / Maint / Mgmt: −$247
• Net cashflow: $204/mo
• Annual: $2,445/yr
• Cap rate: 8.62%
• Cash-on-cash: 8.31%
• DSCR: 1.37
• 1% rule: 1.12%
• Cash to close: $29,400

Investor read

• This is a 2-bed/2.0-bath single-family listed at $105k. Condition is rated fair.
• At list price, monthly cash flow is $204 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $105k).
• It's been on market 457 days — a 12% lower offer ($92k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $92k (12.0% below list) — sets the bar for market timing.
• In year one you build about $183 of equity ($726 loan paydown + $-543 appreciation (-0.5% local appreciation)).
• Location reads 59/100 on livability (#1,150 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime D-, amenities F, commute F.
• Trinity ISD (rural): math 27% / reading 29% proficiency, ranked #682 of 826 in TX (top 83%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Lansberry El (math 35% / reading 33%, grade F, #2,149 of 4,322 statewide, top 50%, 570 students, 91% FRL); Trinity J H (math 21% / reading 25%, grade F, #1,327 of 1,662 statewide, top 81%, 280 students, 91% FRL); Trinity H S (math 22% / reading 32%, grade F, #1,204 of 1,632 statewide, top 75%, 350 students, 84% FRL) — zoned schools average 89% FRL vs 50% district-wide (38 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 472 active listings in the ZIP; 1 units permitted in Trinity County in 2024 (0 in 5+ unit buildings).
• Trinity County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 5y ago; this cycle's ask has dropped $20k (16%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-0.5% appreciation + 3.0% rent growth), your $29k cash investment doubles in ~8 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk; severe wind risk, 97% chance of damaging wind over 30y; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.6% vs local median 4.4% in Riverside — 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 457 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?
• 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?
• Crime grade is D 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?
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?
• What's the documented flood / surge / shoreline-erosion history here (FEMA AND non-FEMA — e.g., storm surge, creek backup, septic-field saturation)?

Repairs flagged (vision-AI assessment)

• Major: exterior paint — extensive peeling
• Major: landscaping — overgrown vegetation