224 Beech Dr

Zavalla, TX 75980

$80,000B

2 bd · 2.0 ba · 1,527 sqft · Built 1972 · SingleFamily · Pending · 99 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,141/mo
• Mortgage (P&I): −$420
• Tax + insurance: −$133
• HOA: −$0
• Vac / Maint / Mgmt: −$240
• Net cashflow: $349/mo
• Annual: $4,185/yr
• Cap rate: 11.52%
• Cash-on-cash: 18.69%
• DSCR: 1.83
• 1% rule: 1.43%
• Cash to close: $22,400

Investor read

• This is a 2-bed/2.0-bath single-family listed at $80k. Condition is rated fair.
• At list price, monthly cash flow is $349 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $80k).
• It's been on market 99 days — a 9% lower offer ($73k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $73k (9.0% below list) — sets the bar for market timing.
• In year one you build about $10 of equity ($553 loan paydown + $-543 appreciation (-0.7% local appreciation)).
• Location reads 55/100 on livability (#1,345 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Zavalla ISD (rural): math 45% / reading 30% proficiency, ranked #828 of 1,141 in TX (top 73%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Zavalla El (math 54% / reading 44%, grade D, #865 of 4,322 statewide, top 21%, 163 students, 78% FRL); Zavalla H S (math 27% / reading 42%, grade F, #963 of 1,632 statewide, top 61%, 160 students, 62% FRL).
• Market conditions: 82 active listings in the ZIP; 120 units permitted in Angelina County in 2024 (0 in 5+ unit buildings).
• At projected returns (-0.7% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 95% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.5% vs local median 2.2% in Zavalla — 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

• It's been on market 99 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1972 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Signs of significant wear and tear
• Major: exterior — Overgrown vegetation and debris
• Major: flooring — Exposed concrete and debris
• Major: HVAC/mechanicals — No visible photos of HVAC/mechanicals