2112 Fm 3186 D5 Unit D5

Onalaska, TX 77360

$399,000F

2 bd · 2.0 ba · 1,508 sqft · Built 2026 · Condo · Active · 124 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,100/mo
• Mortgage (P&I): −$2,389
• Tax + insurance: −$759
• HOA: −$350
• Vac / Maint / Mgmt: −$441
• Net cashflow: $-1,839/mo
• Annual: $-22,072/yr
• Cap rate: 1.45%
• Cash-on-cash: -17.30%
• DSCR: 0.23
• 1% rule: 0.46%
• Cash to close: $127,560

Investor read

• This is a 2-bed/2.0-bath condo listed at $399k. Condition is rated excellent.
• At list price, monthly cash flow is $-2k ($-22k/yr) — negative.
• To cash-flow at today's rent, offer at most $189k (52.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $210k (47.4% below list).
• It's been on market 124 days — a 12% lower offer ($351k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $189k (52.5% below list) — sets the bar for cash-flow.
• In year one you build about $377 of equity ($3k loan paydown + $-3k appreciation (-0.6% local appreciation)).
• Location reads 60/100 on livability (#1,055 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, crime D+, amenities F.
• Onalaska ISD (rural): math 50% / reading 48% proficiency, ranked #213 of 826 in TX (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Onalaska El (math 52% / reading 42%, grade D-, #1,006 of 4,322 statewide, top 25%, 712 students, 70% FRL); Onalaska Jr/Sr High (math 48% / reading 55%, grade D+, #478 of 1,632 statewide, top 29%, 527 students, 58% FRL).
• Market conditions: 444 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 769 units permitted in Polk County in 2024 (0 in 5+ unit buildings).
• Polk County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: severe wind risk, 99% 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 1.4% vs local median 2.9% in Onalaska — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $2,100/mo this rent would consume 51% of the median local household income ($49k/yr) (locally 18% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 124 days. Have you received any prior offers? Is the seller open to a 53% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 D-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?