5024 Shumard Dr

Lindale, TX 75706

$316,490D

4 bd · 2.0 ba · 1,738 sqft · Built 2026 · SingleFamily · Active · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,250/mo
• Mortgage (P&I): −$1,660
• Tax + insurance: −$527
• HOA: −$46
• Vac / Maint / Mgmt: −$472
• Net cashflow: $-456/mo
• Annual: $-5,468/yr
• Cap rate: 4.57%
• Cash-on-cash: -6.17%
• DSCR: 0.73
• 1% rule: 0.71%
• Cash to close: $88,617

Investor read

• This is a 4-bed/2.0-bath single-family listed at $316k.
• At list price, monthly cash flow is $-456 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $251k (20.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $225k (28.9% below list).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $225k (28.9% below list) — sets the bar for 1% rule.
• In year one you build about $23k of equity ($2k loan paydown + $21k appreciation (6.7% local appreciation)).
• Location reads 79/100 on livability (#52 in TX, #2,100 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Lindale ISD (town): math 71% / reading 66% proficiency, ranked #20 of 826 in TX (top 2%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Velma Penny El (math 67% / reading 67%, grade B+, #199 of 4,322 statewide, top 5%, 541 students, 48% FRL); E J Moss Int (math 66% / reading 59%, grade B+, #128 of 1,662 statewide, top 8%, 981 students, 45% FRL); Lindale H S (math 79% / reading 75%, grade A-, #60 of 1,632 statewide, top 4%, 1,265 students, 38% FRL).
• Market conditions: 110 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 595 units permitted in Smith County in 2024 (45 in 5+ unit buildings).
• Smith County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts 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.
• By year 2, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.6% vs local median 3.1% in Lindale — 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.
• 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.