508 Keasler St

Hughes Springs, TX 75656

$55,900B+

2 bd · 1.0 ba · 1,100 sqft · Built 1960 · SingleFamily · Pending · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $995/mo
• Mortgage (P&I): −$293
• Tax + insurance: −$218
• HOA: −$0
• Vac / Maint / Mgmt: −$209
• Net cashflow: $275/mo
• Annual: $3,294/yr
• Cap rate: 14.87%
• Cash-on-cash: 30.65%
• DSCR: 2.36
• 1% rule: 1.78%
• Cash to close: $15,652

Investor read

• This is a 2-bed/1.0-bath single-family listed at $56k. Condition is rated fair.
• At list price, monthly cash flow is $275 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($995 rent vs $56k).
• It's been on market 27 days — a 2% lower offer ($55k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $55k (1.5% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($386 loan paydown + $3k appreciation (5.7% local appreciation)).
• Location reads 72/100 on livability (#257 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Hughes Springs ISD (town): math 43% / reading 46% proficiency, ranked #296 of 826 in TX (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hughes Springs El (math 41% / reading 43%, grade F, #1,335 of 4,322 statewide, top 33%, 535 students, 67% FRL); Hughes Springs J H (math 37% / reading 42%, grade F, #660 of 1,662 statewide, top 41%, 276 students, 57% FRL); Hughes Springs H S (math 62% / reading 67%, grade B-, #199 of 1,632 statewide, top 14%, 338 students, 49% FRL) — zoned schools at 58% FRL track the district average.
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: 59 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 12 units permitted in Cass County in 2024 (0 in 5+ unit buildings).
• Cass County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (5.7% appreciation + 3.0% rent growth), your $16k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); major wind risk, 27% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Repairs flagged (vision-AI assessment)

• Major: Kitchen appliances — Old and worn
• Major: Flooring — Worn and uneven
• Major: Paint — Needs fresh paint in kitchen and bathrooms