1603 N Lockhart St · Sherman, TX 75092

$98,000

3 bd · 2.0 ba · 1,628 sqft · SingleFamily public records · 1 Days on market

Built 1939 0.28 ac lot

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Why this score? — see what drove the B- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +29.3/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Livability +3.1/5.0
• Schools +2.9/10.0
• Condition / age +2.5/5.0
• Rent growth +1.9/5.0
• Appreciation +0.0/10.0

Listing remarks

Charming home located in the heart of Sherman featuring 1,628 SQFT on a spacious 0.28-acre lot, Built in 1939, this property offers classic character with strong investment potential. Conveniently located near local shopping, dining, and quick access to major highways for an easy commute. Ideal opportunity for investors, buy-and-hold strategies, or future value-add potential.

Key facts

• 0.28 acre lot
• 2 garage spots
• Built 1939

Tags

• SPACIOUS 0.28-ACRE LOT
• QUICK ACCESS TO MAJOR HIGHWAYS

Property features AI

Finance

• Other: Possession: Other; Listing agreement: Exclusive Agency; Transaction type: For Sale
• Financial info: Listing terms: Cash; Second mortgage: No
• HOA & community: No homeowners association

Exterior

• Parking: Attached garage; Two covered parking spaces; Two garage spaces
• Utilities: City water; City sewer; No municipal utility district
• Home design: Single-family residence; Residential property; Built in 1939; One story
• Construction: Year built: 1939
• Exterior features: Lot less than 0.5 acre (about 0.282 acres); Subdivision: Maxeys 1st Add

Interior

• Kitchen: Kitchen
• Bedrooms: Three bedrooms (primary bedroom on main level)
• Bathrooms: Two full bathrooms
• Interior features: One-level floor plan; Seven total rooms; One living area; One dining area; Other interior features
• Laundry & utility: Appliances: Other

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $98k.

Deal economics

• At list price, monthly cash flow is $344 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $98k).
• Cap rate 10.5% vs local median 3.7% in Sherman — 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.

Location & tenants

• Location reads 61/100 on livability (#1,027 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime C-, employment C-, amenities F.
• Sherman ISD (urban): math 31% / reading 37% proficiency, ranked #546 of 826 in TX (top 66%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Crutchfield El (math 27% / reading 22%, grade F, #3,052 of 4,322 statewide, top 74%, 408 students, 89% FRL) — zoned schools average 89% FRL vs 60% district-wide (29 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents soft (-2.4%/yr); 636 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 62% of comp listings sitting > 30 days — soft ceiling on asking rent; 2,272 units permitted in Grayson County in 2024 (750 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $678 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Grayson County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

Negotiation context

• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: property tax is 4.2% of price; built in 1939 — expect roof / HVAC / electrical / plumbing capex.
• 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.

Recommended offer $98,000

Questions for the listing agent

1. Built in 1939 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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.
6. 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.
7. 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.

Investment metrics

• 1% rule: 1.60% ✓
• Cap rate: 10.50%
• Cash-on-cash: 15.04%
• DSCR: 1.67
• GRM: 5.2

CMA / ARV

• ARV (on-the-fly): $275,132
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1511 N Alexander St	0.16mi	3/2.0	1,414 (-13%)	1mo	$282,500	$200	70
2316 Diana St	0.55mi	3/2.0	1,585 (-3%)	1mo	$285,000	$180	69
1402 N Ricketts St	0.21mi	3/2.0	1,830 (+12%)	3mo	$264,999	$145	67
823 W Fischer St	0.41mi	3/2.0	1,748 (+7%)	6mo	$299,000	$171	63
2418 Monett Dr	0.64mi	3/2.0	1,574 (-3%)	2mo	$255,000	$162	63
810 N Walnut St	0.73mi	3/2.0	1,628 (0%)	5mo	$275,000	$169	62
904 N Woods St	0.48mi	3/2.0	1,468 (-10%)	1mo	$219,999	$150	60
653 Kessler Blvd	0.71mi	3/2.0	1,681 (+3%)	3mo	$239,000	$142	59
603 N Wharton St	0.67mi	3/1.5	1,722 (+6%)	1mo	$194,000	$113	56
2313 N Ricketts St	0.52mi	3/2.0	1,414 (-13%)	2mo	$240,000	$170	52
2209 N Hickory St	0.53mi	3/3.0	1,436 (-12%)	1mo	$235,000	$164	50
2519 N Shannon St	0.74mi	4/2.0 (+1)	1,462 (-10%)	2mo	$250,000	$171	42

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: 1.6%
• Equity multiple: 1.06×
• Total profit: $1,582
• Equity at exit: $14,612

10-year hold

• IRR: 7.2%
• Equity multiple: 1.45×
• Total profit: $12,448
• Equity at exit: $8,473

Cash invested: $27,440 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Texas: 87 Strongly Landlord-Friendly · R+5
• County: — inherits STATE
• City: — inherits STATE

3-day notice; statewide preemption; one of the fastest eviction climates; Travis County (Austin) slightly slower.

Methodology + full state rankings →

ZIP-level market 75092

• Rents YoY: -2.4%
• Active inventory: 636
• Price-to-rent: 5.2×

Monthly cashflow live

• Estimated rent: $1,569 high
• Mortgage (P&I): −$514
• Tax from tax record: −$341 /mo · $4,094/yr
• Insurance: −$41
• HOA: −$0
• Vacancy / Maint / Mgmt: −$330
• Net cashflow: $344

Break-even live

Break-even rent $1,134

Max offer price $98,000

Occupancy floor 73%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $24,500
• Closing costs: $2,940
• Reserves months: —
• Total cash needed: —

Rent comps 40 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1706 N Ricketts St Sherman, TX	3.0	2.0	1106	$1,600	$1.45	21d	1	0.16mi
1916 N Alexander St Sherman, TX	3.0	2.0	1240	$1,575	$1.27	43d	1	0.32mi
110-112 W Fairview St Sherman, TX	2.0	1.5	1200	$1,200	$1.00	43d	1	0.36mi
1505 Park Pl Sherman, TX	3.0	2.0	1645	$1,675	$1.02	43d	1	0.36mi
1312 N Travis St Sherman, TX	3.0	1.5	1086	$1,325	$1.22	43d	1	0.39mi
1809 Park Pl Sherman, TX	3.0	2.0	1326	$1,425	$1.07	21d	1	0.40mi
1811 Park Pl Sherman, TX	3.0	2.0	1326	$1,425	$1.07	21d	1	0.41mi
1404 Park Pl Sherman, TX	3.0	2.0	1150	$1,400	$1.22	43d	1	0.42mi
1014 W Belden St Sherman, TX	3.0	2.0	1573	$1,599	$1.02	21d	1	0.42mi
822 W Fischer St Sherman, TX	3.0	1.0	1256	$1,350	$1.07	21d	1	0.43mi
221 W Burton St Sherman, TX	3.0	1.0	1440	$1,250	$0.87	43d	1	0.47mi
814 W College St Sherman, TX	2.0	2.0	1100	$1,150	$1.05	43d	1	0.50mi
2208 Hickory St Unit 2208 Sherman, TX	3.0	2.5	1635	$1,750	$1.07	43d	1	0.52mi
1350 W Taylor St Sherman, TX	1.0–3.0	1.0–2.0	1153	$2,250	$1.95	21d	129	0.56mi
914 W Washington St Unit F Sherman, TX	2.0	1.5	1287	$1,165	$0.91	43d	1	0.62mi
2409 Hickory St Sherman, TX	3.0	2.0	1095	$1,500	$1.37	43d	1	0.64mi
930 W Freeman St Sherman, TX	3.0	2.0	1222	$1,499	$1.23	21d	1	0.67mi
815 N Travis St Sherman, TX	3.0	2.0	1536	$1,550	$1.01	21d	1	0.68mi
524-526 N Woods St Sherman, TX	3.0	2.0	1454	$1,445	$0.99	43d	1	0.68mi
2429 N Ricketts St Unit NA Sherman, TX	4.0	2.0	1804	$2,200	$1.22	43d	1	0.69mi
620 N Walnut St Sherman, TX	2.0	1.0	1100	$1,050	$0.95	43d	1	0.78mi
609 E McGee St Unit 609 Sherman, TX	4.0	2.5	1600	$1,800	$1.12	43d	1	0.80mi
823 N Branch St Sherman, TX	3.0	2.0	1357	$1,650	$1.22	21d	1	0.80mi
301 E Brockett St Unit 100 Sherman, TX	4.0	4.0	1169	$1,400	$1.20	43d	1	0.81mi
1704 W Birge St Unit Lease Sherman, TX	3.0	2.0	1942	$1,750	$0.90	43d	1	0.86mi
1704 W Birge St Sherman, TX	4.0	2.0	1942	$2,200	$1.13	43d	1	0.86mi
1712 W Birge St Sherman, TX	3.0	2.0	1260	$1,695	$1.35	43d	1	0.90mi
614 E College St Sherman, TX	3.0	2.0	1238	$1,400	$1.13	21d	1	0.94mi
916 N Throckmorton St Sherman, TX	3.0	2.0	1259	$1,400	$1.11	21d	1	0.95mi
514 E Brockett St Unit 514 Sherman, TX	4.0	4.5	1800	$1,800	$1.00	43d	1	0.95mi
608 E College St Unit 608 Sherman, TX	3.0	2.0	1230	$1,325	$1.08	21d	1	0.95mi
607 E Carter St Unit 609 Sherman, TX	3.0	2.0	1230	$1,450	$1.18	21d	1	0.96mi
1811 W College St Sherman, TX	3.0	1.0	1150	$1,395	$1.21	43d	1	0.96mi
214 N Ricketts St Sherman, TX	3.0	2.0	1211	$1,550	$1.28	43d	1	0.97mi
609 E Carter St Sherman, TX	3.0	2.0	1230	$1,450	$1.18	21d	1	0.97mi
1402 Hillcrest Dr Sherman, TX	3.0	1.5	1216	$1,595	$1.31	43d	1	0.98mi
1800 W Washington St Sherman, TX	1.0–3.0	1.0–2.0	918	$1,100	$1.20	21d	77	1.00mi
207 N Highland Ave Sherman, TX	2.0	1.0	1175	$1,300	$1.11	43d	1	1.02mi
1500 N Grant Dr Unit B Sherman, TX	2.0	2.0	1256	$1,250	$1.00	43d	1	1.05mi
1500 N Grant Dr Unit A Sherman, TX	3.0	2.0	1256	$1,500	$1.19	43d	1	1.05mi

Listing history 4 events

1. 2026-05-21
   status Pending
2. 2026-05-20
   listed $98,000 Active
3. 2007-11-09
   soldstatus
4. 1999-05-04
   soldstatus

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast TX · Resets to sale price

• Current annual tax: $4,094 · $341/mo
• Projected year-2 tax: $4,094 · $341/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 6/10 Major 7 d/yr ≥108°F today · 21 d/yr by 30 yrs out
• 💨 Wind 4/10 Moderate 22% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $18,833
• − Mortgage interest: −$5,490
• − Property taxes: −$4,094
• − Insurance: −$490
• − Repairs & maintenance: −$1,507
• − Management: −$1,507
• − Depreciation: −$2,851
• Taxable income: $2,895
• Est. tax owed @ 24.0%: −$695
• After-tax cash flow: $3,432/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Sherman ISD
• NCES district ID: 4840080
• Math proficiency: 31% ▼ -9.00%
• Reading proficiency: 37% ▼ -2.00%
• Median HH income: $42,587
• Composite: 28.79/100
• National rank: #6665
• State rank: #546 of 826 in TX

Livability — Sherman

• Score: 61/100
• State rank: #1027
• US rank: #18243

Category grades

Amenities F Commute F Cost of living A+ Crime C- Employment C- Housing A+ Health & safety F User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Sherman, TX
• County: Grayson County · 108,053 people
• City population: 54,936
• Metro: Sherman-Denison, TX
• Population (ZIP): 28,342
• Household income: $68,036
• Rent vs Own: 41.9% rent · 58.1% own
• Severe rent burden: 1278.0

Population outlook (Grayson County) Hauer SSP2

• Today (2025): 134,540 people
• By 2030: 138,653 · +3.1%
• By 2040: 145,958 · +8.5%
• By 2050: 151,218 · +12.4%
• By 2075: 161,802 · +20.3%
• By 2100: 159,036 · +18.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (77%)
• Race & ethnicity: White 77% Hispanic / Latino 10% Two or more races 8% Black 6% Asian 3%
• Hispanic origin (detail): Mexican 8%
• Common ancestry: Italian 3% Slovak 3% Lithuanian 2%
• Foreign-born: 6% · Canada, South Korea
• Languages at home: 92% English-only · Spanish 5% Other Indo-European 1%

Political lean MEDSL · Grayson

• 2024 margin: Solid R (+54.3) · D 22.5% · R 76.7%
• 2008→2024 swing: -16.4pp toward R · 2008: -37.9pp · 2024: -54.3pp
• All cycles: 2024: R+54.3 2020: R+49.9 2016: R+53.1 2012: R+48.0 2008: R+37.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -201.47%
• Current HPI: 235.984
• Rent YoY: ▼ -2.36%
• Metro: Sherman-Denison, TX
• State GDP YoY: ▲ 3.95%
• F500 in state: 110

Industry mix (Fortune 500 HQ in TX)

Industry	F500 HQs	Revenue
▸Energy	16	$1,198B
▸Technology	5	$198B
▸Engineering / Construction	4	$72B
▸Energy Services	3	$60B
▸Utilities	3	$41B
▸Healthcare	2	$330B

Price history

4 events — show timeline

• 2026-05-21 Pending — NTREIS
• 2026-05-20 Listed $98,000 NTREIS
• 2007-11-09 Sold (Public Records) — Public Records
• 1999-05-04 Sold (Public Records) — Public Records

Property tax history

+4.3%/yr

Latest (2025): $4,094 · +8.6% YoY. Source: county tax records.