4214 S Fm 2148

Texarkana, TX 75501

$32,500B-

2 bd · 1.0 ba · 460 sqft · Built 1930 · Other · Active · 174 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $832/mo
• Mortgage (P&I): −$170
• Tax + insurance: −$33
• HOA: −$0
• Vac / Maint / Mgmt: −$175
• Net cashflow: $453/mo
• Annual: $5,440/yr
• Cap rate: 23.03%
• Cash-on-cash: 59.78%
• DSCR: 3.66
• 1% rule: 2.56%
• Cash to close: $9,100

Investor read

• This is a 2-bed/1.0-bath other listed at $32k.
• At list price, monthly cash flow is $453 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($832 rent vs $32k).
• It's been on market 174 days — a 12% lower offer ($29k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $29k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $225 of loan paydown is wiped out by about $975 of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#93 in TX, #3,241 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities D+, crime D, employment D.
• Liberty-Eylau ISD (urban): math 19% / reading 23% proficiency, ranked #772 of 826 in TX (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Liberty-Eylau El (math 20% / reading 16%, grade F, #3,785 of 4,322 statewide, top 88%, 575 students, 90% FRL); Liberty-Eylau Middle (math 19% / reading 21%, grade F, #1,428 of 1,662 statewide, top 87%, 573 students, 89% FRL); Liberty-Eylau H S (math 17% / reading 37%, grade F, #1,204 of 1,632 statewide, top 75%, 532 students, 77% FRL) — zoned schools average 85% FRL vs 68% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.6%/yr); 326 active listings in the ZIP; 137 units permitted in Bowie County in 2024 (5 in 5+ unit buildings).
• 3 sale attempts; this cycle's ask has dropped $11k (25%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 1.6% rent growth), your $9k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 23.0% vs local median 4.3% in Texarkana — 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 174 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1930 — 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?
• 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?
• 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.