1217 Montgomery St · Memphis, TX 79245

$40,000

4 bd · 4.0 ba · 702 sqft · Other public records · 44 Days on market

Built 1930 5,009 sqft 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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Appreciation +7.2/10.0
• Livability +3.2/5.0
• Schools +2.9/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks

Great investment opportunity in Memphis TX. This bricked exterior duplex offers a 1 bed 1 bath on each side with covered parking in the rear. With some TLC this could be a great long term investment. Don't wait, call today! Original main sewer line has been replaced.

Key facts

• Covered parking
• 5,009 sq ft lot
• Garage

Tags

• BRICKED EXTERIOR DUPLEX
• COVERED PARKING

Property features AI

Finance

• Financial info: Annual tax amount reported

Exterior

• Parking: Attached carport
• Home design: Duplex (residential income property); Multi-family zoning
• Construction: Brick construction; Built area approximately 1,404 above-grade
• Exterior features: Composition roof; Paved road access; City street frontage; Publicly maintained road

Interior

• Bathrooms: 2 full bathrooms
• Heating & cooling: No heating; No cooling
• Interior features: Fixer condition

What this means for you Summary

Snapshot

• This is a 4-bed/4.0-bath other listed at $40k.

Deal economics

• At list price, monthly cash flow is $464 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($933 rent vs $40k).
• Recommended offer: $39k (3.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 64/100 on livability (#754 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools F, amenities F, commute F.
• Memphis ISD (rural): math 34% / reading 36% proficiency, ranked #555 of 826 in TX (top 67%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 20 active listings in the ZIP.

Forward outlook

• In year one you build about $2k of equity ($277 loan paydown + $2k appreciation (4.5% local appreciation)).
• Hall County population projected at -23% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (4.5% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 44 days — a 3% lower offer ($39k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $38,800 (3.0% below list)

Questions for the listing agent

1. It's been on market 44 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Built in 1930 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
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: 2.33% ✓
• Cap rate: 20.20%
• Cash-on-cash: 49.68%
• DSCR: 3.21
• GRM: 3.6

CMA / ARV

No comps found within radius.

Projected returns pro-forma

4.49% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 56.7%
• Equity multiple: 4.36×
• Total profit: $37,606
• Equity at exit: $21,436

10-year hold

• IRR: 54.9%
• Equity multiple: 8.93×
• Total profit: $88,764
• Equity at exit: $36,016

Cash invested: $11,200 (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 79245

• Home prices YoY: 4.6%
• Active inventory: 20
• Price-to-rent: 3.6×

Monthly cashflow live

• Estimated rent: $933 medium
• Mortgage (P&I): −$210
• Tax from tax record: −$47 /mo · $568/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$196
• Net cashflow: $464

Break-even live

Break-even rent $347

Max offer price $40,000

Occupancy floor 45%

Sensitivity live

Price	-10% $486	-5% $475	+0% $464	+5% $452	+10% $441
Rent	-10% $390	-5% $427	+0% $464	+5% $501	+10% $537
Rate	-1.0pp $484	-0.5pp $474	base $464	+0.5pp $453	+1.0pp $443

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: $10,000
• Closing costs: $1,200
• Reserves months: —
• Total cash needed: —

Listing history 18 events

1. 2026-06-21
   days on market $40,000 Active 44 DOM
2. 2026-06-21
   days on market $40,000 Active 43 DOM
3. 2026-06-18
   days on market $40,000 Active 41 DOM
4. 2026-06-17
   days on market $40,000 Active 40 DOM
5. 2026-06-16
   days on market $40,000 Active 39 DOM
6. 2026-06-15
   days on market $40,000 Active 38 DOM
7. 2026-06-15
   days on market $40,000 Active 37 DOM
8. 2026-06-13
   days on market $40,000 Active 36 DOM
9. 2026-06-12
   days on market $40,000 Active 35 DOM
10. 2026-06-10
    days on market $40,000 Active 32 DOM
11. 2026-06-08
    days on market $40,000 Active 31 DOM
12. 2026-06-08
    days on market $40,000 Active 30 DOM
13. 2026-06-05
    days on market $40,000 Active 28 DOM
14. 2026-06-03
    days on market $40,000 Active 26 DOM
15. 2026-06-02
    days on market $40,000 Active 25 DOM
16. 2026-06-01
    days on market $40,000 Active 24 DOM
17. 2026-05-31
    days on market $40,000 Active 23 DOM
18. 2026-05-08
    listed $40,000 Active 267-char remark

ⓘ 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: $568 · $47/mo
• Projected year-2 tax: $732 · $61/mo
• Expected delta: +$164/yr (+$14/mo · 28.9%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 8/10 Severe
• 🌡 Heat 6/10 Major 7 d/yr ≥106°F today · 18 d/yr by 30 yrs out
• 💨 Wind 2/10 Low 100% 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: $11,202
• − Mortgage interest: −$2,241
• − Property taxes: −$568
• − Insurance: −$200
• − Repairs & maintenance: −$896
• − Management: −$896
• − Depreciation: −$1,164
• Taxable income: $5,237
• Est. tax owed @ 24.0%: −$1,257
• After-tax cash flow: $4,307/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: Memphis ISD
• NCES district ID: 4830180
• Math proficiency: 34% ▼ -10.00%
• Reading proficiency: 36% ▼ -1.00%
• Median HH income: $31,827
• Composite: 28.61/100
• National rank: #6711
• State rank: #555 of 826 in TX

Livability — Memphis

• Score: 64/100
• State rank: #754
• US rank: #13886

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Memphis, TX
• Population (ZIP): 2,291

Population outlook (Hall County) Hauer SSP2

• Today (2025): 2,857 people
• By 2030: 2,714 · -5.0%
• By 2040: 2,467 · -13.7%
• By 2050: 2,202 · -22.9%
• By 2075: 1,662 · -41.8%
• By 2100: 1,127 · -60.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.60)
• Race & ethnicity: White 52% Hispanic / Latino 36% Two or more races 16% Black 6% Native American 1%
• Hispanic origin (detail): Mexican 26%
• Common ancestry: Italian 2% European 2% Slovak 1%
• Foreign-born: 10% · Canada
• Languages at home: 71% English-only · Spanish 29%

Political lean MEDSL · Hall

• 2024 margin: Solid R (+73.4) · D 13.0% · R 86.3%
• 2008→2024 swing: -25.4pp toward R · 2008: -48.0pp · 2024: -73.4pp
• All cycles: 2024: R+73.4 2020: R+70.8 2016: R+66.8 2012: R+51.2 2008: R+48.0

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 4.49%
• Current HPI: 101.6222
• 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

1 event — show timeline

• 2026-05-08 Listed $40,000 LARMLS

Property tax history

+4.6%/yr

Latest (2025): $568 · +26.5% YoY. Source: county tax records.