510 Carthage St

Caddo Mills, TX 75135

$281,490D

3 bd · 2.0 ba · 1,735 sqft · Built 2026 · SingleFamily · Active · 19 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,409/mo
• Mortgage (P&I): −$1,476
• Tax + insurance: −$469
• HOA: −$40
• Vac / Maint / Mgmt: −$506
• Net cashflow: $-82/mo
• Annual: $-982/yr
• Cap rate: 5.94%
• Cash-on-cash: -1.25%
• DSCR: 0.94
• 1% rule: 0.86%
• Cash to close: $78,817

Investor read

• This is a 3-bed/2.0-bath single-family listed at $281k. Condition is rated good.
• At list price, monthly cash flow is $-82 ($-982/yr) — negative.
• To cash-flow at today's rent, offer at most $270k (4.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $241k (14.4% below list).
• It's been on market 19 days — a 2% lower offer ($277k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $241k (14.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#216 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Caddo Mills ISD (rural): math 59% / reading 59% proficiency, ranked #60 of 826 in TX (top 7%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Frances And Jeannette Lee El (math 63% / reading 55%, grade B-, #455 of 4,322 statewide, top 11%, 571 students, 29% FRL); Caddo Mills Middle (math 51% / reading 53%, grade C+, #301 of 1,662 statewide, top 19%, 416 students, 28% FRL); Caddo Mills H S (math 72% / reading 77%, grade B+, #82 of 1,632 statewide, top 6%, 681 students, 28% FRL) — zoned schools at 28% FRL track the district average.
• Market conditions: 317 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); 1,289 units permitted in Hunt County in 2024 (527 in 5+ unit buildings).
• Hunt County population projected at +15% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 5.9% vs local median 3.9% in Caddo Mills — 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

• 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.