508 Southgate Ave · Tyler, TX 75702

$79,000

1 bd · 1.0 ba · 854 sqft · SingleFamily public records · 22 Days on market

Built 1949 9,191 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 +28.1/30.0
• DSCR +10.0/10.0
• 1% rule +8.3/10.0
• ARV discount +7.5/15.0
• Livability +3.8/5.0
• Schools +3.3/10.0
• Rent growth +3.1/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Opportunity awaits in the heart of Tyler with this 1-bath cottage, offering 854 sq ft of living space on a generous 0.21-acre lot. Located just minutes from Downtown Tyler, the Caldwell Zoo, and Tyler Junior College, this property provides a solid foundation for a fix-and-flip, rental, or custom renovation. With its competitive price point and prime location in the 75702 zip code, this home is a blank canvas ready for a creative transformation. Whether you are looking to build your rental portfolio or take on a rewarding restoration project, this property offers significant value-add potential in a well-connected neighborhood.

Key facts

• Tyler junior college
• Generous lot
• Caldwell zoo

Tags

• GENEROUS LOT
• MINUTES FROM DOWNTOWN TYLER
• CALDWELL ZOO
• TYLER JUNIOR COLLEGE
• PRIME LOCATION

Property features AI

Finance

• Other: Parcel number: 150000074900023000
• Financial info: Treat as clear loan type; No second mortgage
• HOA & community: No homeowners association

Exterior

• Parking: Covered parking (1 space); Driveway and garage present; Garage faces front; 1-car garage
• Utilities: City water; City sewer; Electricity connected; Not in a municipal utility district
• Home design: Single-family residence; One story; Residential property
• Construction: Built in 1949
• Exterior features: Lot in Herndon Hills subdivision; Less than 0.5 acre lot (about 0.211 acres)

Interior

• Kitchen: No appliances included
• Bedrooms: Primary bedroom (1st level) — ~10 x 10
• Bathrooms: 1 full bathroom
• Interior features: Two total rooms; One living area; One dining area; Other interior features
• Laundry & utility: No specific laundry or utility appliances listed

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath single-family listed at $79k.

Deal economics

• At list price, monthly cash flow is $249 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $79k).
• Recommended offer: $78k (1.5% below list) — sets the bar for market timing.
• Cap rate 10.1% vs local median 3.6% in Tyler — 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.

Location & tenants

• Location reads 75/100 on livability (#147 in TX, #4,181 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment C-, crime D+, commute F.
• Tyler ISD (urban): math 39% / reading 38% proficiency, ranked #449 of 826 in TX (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 66% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Peete El (math 22% / reading 17%, grade F, #3,583 of 4,322 statewide, top 86%, 414 students, 98% FRL) — zoned schools average 98% FRL vs 66% district-wide (32 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 20% at this address vs 38% district-wide (-19 pts) — the specific schools serving this property underperform the Tyler ISD average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising (+2.3%/yr); 155 active listings in the ZIP; 14 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); 595 units permitted in Smith County in 2024 (45 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $546 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Smith County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 2.3% rent growth), your $22k cash investment doubles in ~10 years — after that, you're playing with house money.

Negotiation context

• It's been on market 22 days — a 2% lower offer ($78k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1949 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major wind risk, 59% 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.

Recommended offer $77,815 (1.5% below list)

Questions for the listing agent

1. Built in 1949 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. 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?
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: 1.33% ✓
• Cap rate: 10.07%
• Cash-on-cash: 13.49%
• DSCR: 1.60
• GRM: 6.3

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 2.27% rent growth · sell at horizon

5-year hold

• IRR: 2.7%
• Equity multiple: 1.10×
• Total profit: $2,313
• Equity at exit: $11,779

10-year hold

• IRR: 11.6%
• Equity multiple: 1.88×
• Total profit: $19,471
• Equity at exit: $6,830

Cash invested: $22,120 (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 75702

• Home prices YoY: -5.8%
• Rents YoY: 2.3%
• Active inventory: 155
• Price-to-rent: 6.3×

Monthly cashflow live

• Estimated rent: $1,048 high
• Mortgage (P&I): −$414
• Tax from tax record: −$132 /mo · $1,583/yr
• Insurance: −$33
• HOA: −$0
• Vacancy / Maint / Mgmt: −$220
• Net cashflow: $249

Break-even live

Break-even rent $733

Max offer price $79,000

Occupancy floor 71%

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: $19,750
• Closing costs: $2,370
• Reserves months: —
• Total cash needed: —

Rent comps 14 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
2813 W Shaw St Tyler, TX	1.0	2.0	895	$1,200	$1.34	13d	1	0.56mi
2815 W Shaw St Unit 2 Tyler, TX	2.0	1.0	875	$1,200	$1.37	43d	1	0.56mi
2803 W Shaw St Tyler, TX	2.0	1.0	900	$1,050	$1.17	21d	1	0.57mi
2717 W Shaw St Tyler, TX	2.0	1.0	985	$1,200	$1.22	21d	1	0.57mi
310 S Boon Ave Tyler, TX	2.0	1.0	819	$1,200	$1.47	43d	1	0.63mi
1822 W Oakwood St Tyler, TX	2.0	1.0	900	$1,100	$1.22	43d	1	0.97mi
1806 W Oakwood St Tyler, TX	2.0	1.0	900	$975	$1.08	21d	1	1.00mi
1800 W Oakwood St Tyler, TX	2.0	1.0	900	$975	$1.08	21d	1	1.01mi
1523 W 2nd St Tyler, TX	2.0	1.0	810	$750	$0.93	13d	1	1.15mi
210 N Ross Ave Tyler, TX	2.0	1.0	850	$695	$0.82	21d	1	1.24mi
1216 S Glenwood Blvd Tyler, TX	2.0	1.0	808	$1,200	$1.49	13d	1	1.37mi
1011 W 2nd St Tyler, TX	2.0	1.0	840	$895	$1.07	43d	1	1.45mi
710 S Kennedy Ave Unit 710-13 Tyler, TX	1.0	1.0	577	$895	$1.55	13d	1	1.50mi
710 S Kennedy Ave Unit 710-15 Tyler, TX	1.0	1.0	577	$895	$1.55	43d	1	1.50mi

Listing history 20 events

1. 2026-06-19
   days on market $79,000 Active 22 DOM
2. 2026-06-18
   days on market $79,000 Active 21 DOM
3. 2026-06-17
   days on market $79,000 Active 20 DOM
4. 2026-06-16
   days on market $79,000 Active 19 DOM
5. 2026-06-15
   days on market $79,000 Active 18 DOM
6. 2026-06-14
   days on market $79,000 Active 16 DOM
7. 2026-06-13
   pricedays on market $79,000 Active 15 DOM
8. 2026-06-10
   days on market $89,000 Active 13 DOM
9. 2026-06-09
   days on market $89,000 Active 12 DOM
10. 2026-06-08
    days on market $89,000 Active 11 DOM
11. 2026-06-07
    days on market $89,000 Active 10 DOM
12. 2026-06-05
    days on market $89,000 Active 7 DOM
13. 2026-06-03
    price $89,000 Active 5 DOM
14. 2026-06-02
    days on market $99,000 Active 5 DOM
15. 2026-06-01
    days on market $99,000 Active 4 DOM
16. 2026-05-31
    days on market $99,000 Active 3 DOM
17. 2026-05-30
    days on market $99,000 Active 2 DOM
18. 2026-05-28
    listed $99,000 Active
19. 2007-08-30
    soldstatus
20. 1997-12-18
    soldstatus

ⓘ 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: $1,583 · $132/mo
• Projected year-2 tax: $1,583 · $132/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 6/10 Major 7 d/yr ≥109°F today · 26 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 59% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 0 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $12,576
• − Mortgage interest: −$4,425
• − Property taxes: −$1,583
• − Insurance: −$395
• − Repairs & maintenance: −$1,006
• − Management: −$1,006
• − Depreciation: −$2,298
• Taxable income: $1,862
• Est. tax owed @ 24.0%: −$447
• After-tax cash flow: $2,538/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: Tyler ISD
• NCES district ID: 4843470
• Math proficiency: 39% ▼ -4.00%
• Reading proficiency: 38% ▼ -1.00%
• Median HH income: $44,090
• Composite: 32.69/100
• National rank: #5650
• State rank: #449 of 826 in TX

Livability — Tyler

• Score: 75/100
• State rank: #147
• US rank: #4181

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Tyler, TX
• County: Smith County · 180,570 people
• City population: 127,842
• Metro: Tyler, TX
• Population (ZIP): 27,927
• Household income: $51,564
• Rent vs Own: 47.1% rent · 52.9% own
• Severe rent burden: 803.0

Population outlook (Smith County) Hauer SSP2

• Today (2025): 248,890 people
• By 2030: 261,665 · +5.1%
• By 2040: 286,114 · +15.0%
• By 2050: 308,006 · +23.8%
• By 2075: 354,171 · +42.3%
• By 2100: 372,828 · +49.8%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.61)
• Race & ethnicity: Hispanic / Latino 49% Black 37% White 12% Two or more races 11% Native American 1%
• Hispanic origin (detail): Mexican 47%
• Common ancestry: Lithuanian 1%
• Foreign-born: 20% · Canada
• Languages at home: 56% English-only · Spanish 44%

Political lean MEDSL · Smith

• 2024 margin: Solid R (+45.1) · D 27.0% · R 72.1%
• 2008→2024 swing: -5.6pp toward R · 2008: -39.5pp · 2024: -45.1pp
• All cycles: 2024: R+45.1 2020: R+39.4 2016: R+43.9 2012: R+46.9 2008: R+39.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -12.63%
• Current HPI: 207.1573
• Rent YoY: ▲ 2.27%
• Metro: Tyler, TX
• 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

3 events — show timeline

• 2026-05-28 Listed $99,000 NTREIS
• 2007-08-30 Sold (Public Records) — Public Records
• 1997-12-18 Sold (Public Records) — Public Records

Property tax history

+6.6%/yr

Latest (2024): $1,583 · +17.1% YoY. Source: county tax records.