1125 E Palestine St · Mexia, TX 76667

$120,000

3 bd · 1.0 ba · 2,114 sqft · SingleFamily public records · 27 Days on market

Built 1920 0.28 ac lot $57/sqft · 23% below area Est $155k · 23% under

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Why this score? — see what drove the C 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 +18.2/30.0
• ARV discount +15.0/15.0
• 1% rule +6.1/10.0
• DSCR +5.7/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +2.2/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

*Seller financing available! $10k down with 8.5% for 30 years* Welcome to this charming home in Mexia! Featuring two spacious living areas, this property offers plenty of room to relax, entertain, or create a flexible layout to suit your lifestyle. The kitchen boasts ample cabinet space, making storage and organization a breeze. Situated on a generous quarter-acre lot, the large yard provides endless possibilities—whether you’re dreaming of outdoor gatherings, gardening, or simply enjoying extra space. This home is a fantastic opportunity for first-time buyers or investors looking to add to their portfolio. With its great location and versatile layout, it’s full of potential and ready for your personal touch!

Key facts

• Large yard
• Ample cabinet space
• 0.28 acre lot

Tags

• SPACIOUS LIVING AREAS
• AMPLE CABINET SPACE
• GENEROUS QUARTER-ACRE LOT
• LARGE YARD

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $120k.

Deal economics

• At list price, monthly cash flow is $109 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $120k).
• Recommended offer: $118k (1.5% below list) — sets the bar for market timing.
• Cap rate 7.4% vs local median 3.6% in Mexia — 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 68/100 on livability (#458 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety B+; Watch: crime C-, schools F, amenities F.
• Mexia ISD (town): math 22% / reading 32% proficiency, ranked #696 of 826 in TX (top 84%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 129 active listings in the ZIP; 17 units permitted in Limestone County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $830 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Limestone County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Negotiation context

• It's been on market 27 days — a 2% lower offer ($118k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: property tax is 2.6% of price; built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major wind risk, 69% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→25/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $118,200 (1.5% below list)

Questions for the listing agent

1. Built in 1920 — 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 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?
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: 1.11% ✓
• Cap rate: 7.38%
• Cash-on-cash: 3.88%
• DSCR: 1.17
• GRM: 7.5

CMA / ARV

• ARV (median comp): $155,348
• List price: $120,000
• Delta: -22.75%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 6 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1125 E Palestine St	0.00mi	3/2.0	2,114 (0%)	1mo	$120,000	$57	95
1120 Tamarisk Dr	0.43mi	3/2.0	2,088 (-1%)	4mo	$199,900	$96	71
908 E Titus St	0.47mi	3/2.0	2,040 (-4%)	1mo	$57,500	$28	67
820 E Palestine	0.48mi	3/2.0	2,310 (+9%)	1mo	$224,000	$97	57
600 N Bailey St	0.35mi	3/2.0	1,817 (-14%)	14mo	$170,000	$94	45
812 E Sumpter St	0.56mi	4/2.0 (+1)	1,956 (-8%)	18mo	$55,000	$28	37

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 · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -10.1%
• Equity multiple: 0.63×
• Total profit: $-12,436
• Equity at exit: $17,892

10-year hold

• IRR: -0.7%
• Equity multiple: 0.95×
• Total profit: $-1,554
• Equity at exit: $10,375

Cash invested: $33,600 (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 76667

• Home prices YoY: -8.9%
• Active inventory: 129
• Price-to-rent: 7.5×

Monthly cashflow live

• Estimated rent: $1,331 medium
• Mortgage (P&I): −$629
• Tax from tax record: −$264 /mo · $3,163/yr
• Insurance: −$50
• HOA: −$0
• Vacancy / Maint / Mgmt: −$280
• Net cashflow: $109

Break-even live

Break-even rent $1,194

Max offer price $120,000

Occupancy floor 87%

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: $30,000
• Closing costs: $3,600
• Reserves months: —
• Total cash needed: —

Listing history 9 events

1. 2026-05-11
   status Pending 736-char remark

   Show marketing remark (736 chars)

   *Seller financing available! $10k down with 8.5% for 30 years* Welcome to this charming home in Mexia! Featuring two spacious living areas, this property offers plenty of room to relax, entertain, or create a flexible layout to suit your lifestyle. The kitchen boasts ample cabinet space, making storage and organization a breeze. Situated on a generous quarter-acre lot, the large yard provides endless possibilities—whether you’re dreaming of outdoor gatherings, gardening, or simply enjoying extra space. This home is a fantastic opportunity for first-time buyers or investors looking to add to their portfolio. With its great location and versatile layout, it’s full of potential and ready for your personal touch!

2. 2026-05-07
   historical Active Option Contract 736-char remark

   Show marketing remark (736 chars)

   *Seller financing available! $10k down with 8.5% for 30 years* Welcome to this charming home in Mexia! Featuring two spacious living areas, this property offers plenty of room to relax, entertain, or create a flexible layout to suit your lifestyle. The kitchen boasts ample cabinet space, making storage and organization a breeze. Situated on a generous quarter-acre lot, the large yard provides endless possibilities—whether you’re dreaming of outdoor gatherings, gardening, or simply enjoying extra space. This home is a fantastic opportunity for first-time buyers or investors looking to add to their portfolio. With its great location and versatile layout, it’s full of potential and ready for your personal touch!

3. 2026-04-14
   listed $120,000 Active 736-char remark

   Show marketing remark (736 chars)

   *Seller financing available! $10k down with 8.5% for 30 years* Welcome to this charming home in Mexia! Featuring two spacious living areas, this property offers plenty of room to relax, entertain, or create a flexible layout to suit your lifestyle. The kitchen boasts ample cabinet space, making storage and organization a breeze. Situated on a generous quarter-acre lot, the large yard provides endless possibilities—whether you’re dreaming of outdoor gatherings, gardening, or simply enjoying extra space. This home is a fantastic opportunity for first-time buyers or investors looking to add to their portfolio. With its great location and versatile layout, it’s full of potential and ready for your personal touch!

4. 2026-01-13
   soldstatus
5. 2026-01-02
   soldstatus
6. 2025-11-12
   soldstatus
7. 2021-11-03
   soldstatus
8. 2020-09-30
   soldstatus
9. 1984-05-14
   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: $3,163 · $264/mo
• Projected year-2 tax: $3,163 · $264/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 6/10 Major
• 🌡 Heat 7/10 Severe 7 d/yr ≥109°F today · 25 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 69% chance of damaging wind over 30 yrs
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $15,972
• − Mortgage interest: −$6,722
• − Property taxes: −$3,163
• − Insurance: −$600
• − Repairs & maintenance: −$1,278
• − Management: −$1,278
• − Depreciation: −$3,491
• Taxable loss: −$559
• Est. tax savings @ 24.0%: +$134
• After-tax cash flow: $1,438/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: Mexia ISD
• NCES district ID: 4830420
• Math proficiency: 22% ▼ -10.00%
• Reading proficiency: 32% ▬ 0.00%
• Median HH income: $37,464
• Composite: 22.48/100
• National rank: #8101
• State rank: #696 of 826 in TX

Livability — Mexia

• Score: 68/100
• State rank: #458
• US rank: #9265

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Mexia, TX
• Population (ZIP): 10,494

Population outlook (Limestone County) Hauer SSP2

• Today (2025): 23,396 people
• By 2030: 23,214 · -0.8%
• By 2040: 22,829 · -2.4%
• By 2050: 22,516 · -3.8%
• By 2075: 22,088 · -5.6%
• By 2100: 20,354 · -13.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.67)
• Race & ethnicity: White 45% Hispanic / Latino 29% Two or more races 24% Black 21%
• Hispanic origin (detail): Mexican 26%
• Common ancestry: Serbian 3% Slovak 2% Italian 2%
• Foreign-born: 11% · Canada
• Languages at home: 77% English-only · Spanish 23%

Political lean MEDSL · Limestone

• 2024 margin: Solid R (+56.9) · D 21.2% · R 78.1%
• 2008→2024 swing: -23.4pp toward R · 2008: -33.5pp · 2024: -56.9pp
• All cycles: 2024: R+56.9 2020: R+50.3 2016: R+52.3 2012: R+40.7 2008: R+33.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -15.91%
• Current HPI: 161.8191
• Rent YoY: —
• Metro: —
• 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

9 events — show timeline

• 2026-05-11 Pending — NTREIS
• 2026-05-07 Contingent — NTREIS
• 2026-04-14 Listed $120,000 NTREIS
• 2026-01-13 Sold (Public Records) — Public Records
• 2026-01-02 Sold (Public Records) — Public Records
• 2025-11-12 Sold (Public Records) — Public Records
• 2021-11-03 Sold (Public Records) — Public Records
• 2020-09-30 Sold (Public Records) — Public Records
• 1984-05-14 Sold (Public Records) — Public Records

Property tax history

+12.1%/yr

Latest (2025): $3,163 · +19.2% YoY. Source: county tax records.