610 Corrigan St

Kilgore, TX 75662

$139,000D-

3 bd · 2.0 ba · 960 sqft · Built 2019 · SingleFamily · Active · 65 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,229/mo
• Mortgage (P&I): −$729
• Tax + insurance: −$324
• HOA: −$0
• Vac / Maint / Mgmt: −$258
• Net cashflow: $-82/mo
• Annual: $-987/yr
• Cap rate: 5.58%
• Cash-on-cash: -2.54%
• DSCR: 0.89
• 1% rule: 0.88%
• Cash to close: $38,920

Investor read

• This is a 3-bed/2.0-bath single-family listed at $139k.
• At list price, monthly cash flow is $-82 ($-987/yr) — negative.
• To cash-flow at today's rent, offer at most $124k (10.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $123k (11.6% below list).
• It's been on market 65 days — a 6% lower offer ($131k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $123k (11.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $961 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#257 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime D+, employment D+, amenities F.
• Kilgore ISD (town): math 33% / reading 38% proficiency, ranked #498 of 826 in TX (top 60%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Kilgore Pri (664 students, 82% FRL); Kilgore Middle (math 28% / reading 37%, grade F, #947 of 1,662 statewide, top 58%, 885 students, 75% FRL); Kilgore H S (math 39% / reading 45%, grade F, #730 of 1,632 statewide, top 47%, 1,164 students, 71% FRL) — zoned schools average 76% FRL vs 55% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+8.9%/yr); 289 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 193 units permitted in Gregg County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts since 5y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: major wind risk, 58% chance of damaging wind over 30y; extreme-heat days projected 7→26/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.6% vs local median 3.2% in Kilgore — 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?
• It's been on market 65 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.