1406 E Garnett St · Gainesville, TX 76240

$127,500

2 bd · 2.0 ba · 1,275 sqft · SingleFamily public records · 57 Days on market

Built 1950 0.34 ac lot $100/sqft · 14% below area Est $149k · 14% under ↓ 2% since listing

---

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 +27.1/30.0
• ARV discount +14.0/15.0
• DSCR +9.4/10.0
• 1% rule +8.0/10.0
• Livability +3.3/5.0
• Schools +2.6/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Needs TLC, priced accordingly. Great fix-and-flip or rental hold. Seller has 6 more properties available; package deals welcome. Motivated seller. AS-IS sale. Act fast.

Key facts

• 0.34 acre lot
• 2 parking spots
• Built 1950

Property features AI

Finance

• Other: No known restrictions
• Financial info: Accepts Cash and Conventional financing
• HOA & community: No association

Exterior

• Parking: 2 covered/carport spaces; Carport
• Utilities: City water; City sewer; Not in a municipal utility district
• Home design: Single family residence; One level; Residential property
• Construction: Built in 1950; Siding exterior; Composition roof; Pillar/post/pier foundation
• Exterior features: Covered front porch; Other exterior features; Chain link fencing; Utilities easement

Interior

• Kitchen: No appliances included
• Bedrooms: 3 bedrooms (all on level 1)
• Flooring: Carpet; Laminate
• Bathrooms: 1 full bathroom
• Heating & cooling: Other heating; Other cooling
• Interior features: 5 total rooms; 1 living area; 1 dining area; Other interior features
• Laundry & utility: Washer hookup

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath single-family listed at $128k.

Deal economics

• At list price, monthly cash flow is $362 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $128k).
• Recommended offer: $124k (3.0% below list) — sets the bar for market timing.
• Cap rate 9.7% vs local median 3.7% in Gainesville — 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 66/100 on livability (#602 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B+; Watch: amenities F, commute F, employment F.
• Gainesville ISD (rural): math 33% / reading 29% proficiency, ranked #606 of 826 in TX (top 73%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 72% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Edison El (683 students, 81% FRL).
• Market conditions: 462 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 190 units permitted in Cooke County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $882 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $36k cash investment doubles in ~10 years — after that, you're playing with house money.

Negotiation context

• It's been on market 57 days — a 3% lower offer ($124k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $123,675 (3.0% below list)

Questions for the listing agent

1. It's been on market 57 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
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: 1.30% ✓
• Cap rate: 9.70%
• Cash-on-cash: 12.18%
• DSCR: 1.54
• GRM: 6.4

CMA / ARV

• ARV (median comp): $148,881
• List price: $127,500
• Delta: -14.36%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
809 S Wine St	0.17mi	3/2.0 (+1)	1,288 (+1%)	4mo	$174,000	$135	82
208 S Howeth St	0.19mi	3/2.0 (+1)	1,437 (+13%)	0mo	$262,900	$183	65
1704 Harris St	0.26mi	2/1.0	1,117 (-12%)	2mo	$220,000	$197	62
1005 S Clements St	0.34mi	3/2.0 (+1)	1,180 (-8%)	6mo	$180,000	$153	61
1220 S Clements St	0.54mi	3/2.0 (+1)	1,256 (-2%)	8mo	$243,500	$194	61
316 Ritchey St	0.47mi	3/1.0 (+1)	1,202 (-6%)	1mo	$140,000	$116	59
315 N Morris St	0.54mi	3/2.0 (+1)	1,200 (-6%)	2mo	$199,800	$167	58
932 Moss St	0.60mi	3/1.5 (+1)	1,224 (-4%)	1mo	$120,000	$98	58
1715 Morningside Dr	0.26mi	3/2.0 (+1)	1,443 (+13%)	10mo	$214,000	$148	53
1200 S Wine St	0.41mi	3/1.0 (+1)	1,146 (-10%)	4mo	$124,000	$108	51
1718 Heather Rd	0.27mi	3/2.0 (+1)	1,462 (+15%)	10mo	$245,000	$168	50
1409 Lynwood St	0.71mi	3/2.0 (+1)	1,427 (+12%)	12mo	$166,100	$116	32

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

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

5-year hold

• IRR: 1.8%
• Equity multiple: 1.07×
• Total profit: $2,492
• Equity at exit: $19,011

10-year hold

• IRR: 11.5%
• Equity multiple: 1.90×
• Total profit: $32,165
• Equity at exit: $11,024

Cash invested: $35,700 (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 76240

• Active inventory: 462
• Price-to-rent: 6.4×

Monthly cashflow live

• Estimated rent: $1,658 high
• Mortgage (P&I): −$669
• Tax from tax record: −$226 /mo · $2,711/yr
• Insurance: −$53
• HOA: −$0
• Vacancy / Maint / Mgmt: −$348
• Net cashflow: $362

Break-even live

Break-even rent $1,200

Max offer price $127,500

Occupancy floor 73%

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: $31,875
• Closing costs: $3,825
• Reserves months: —
• Total cash needed: —

Rent comps 5 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1331 Lanius St Gainesville, TX	3.0	2.0	1300	$1,850	$1.42	43d	1	0.14mi
923 S Wine St Gainesville, TX	3.0	1.0	1216	$1,550	$1.27	43d	1	0.26mi
1010 E Main St Gainesville, TX	3.0	1.0	1263	$1,550	$1.23	43d	1	0.39mi
426 N Clements St Gainesville, TX	3.0	2.0	1408	$2,307	$1.64	43d	1	0.58mi
1610 Elizabeth St Gainesville, TX	3.0	1.0	1100	$1,500	$1.36	43d	1	0.84mi

Listing history 19 events

1. 2026-06-19
   days on market $127,500 Active 57 DOM
2. 2026-06-18
   days on market $127,500 Active 56 DOM
3. 2026-06-17
   days on market $127,500 Active 55 DOM
4. 2026-06-16
   days on market $127,500 Active 54 DOM
5. 2026-06-15
   days on market $127,500 Active 53 DOM
6. 2026-06-14
   days on market $127,500 Active 51 DOM
7. 2026-06-12
   days on market $127,500 Active 50 DOM
8. 2026-06-09
   days on market $127,500 Active 47 DOM
9. 2026-06-08
   days on market $127,500 Active 46 DOM
10. 2026-06-07
    days on market $127,500 Active 45 DOM
11. 2026-06-05
    days on market $127,500 Active 42 DOM
12. 2026-06-03
    days on market $127,500 Active 41 DOM
13. 2026-06-02
    pricedays on market $127,500 Active 40 DOM
14. 2026-06-01
    days on market $130,000 Active 39 DOM
15. 2026-05-31
    days on market $130,000 Active 38 DOM
16. 2026-05-30
    days on market $130,000 Active 37 DOM
17. 2026-04-23
    listed $130,000 Active 169-char remark
18. 2010-05-19
    soldstatus
19. 2007-04-16
    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: $2,711 · $226/mo
• Projected year-2 tax: $2,711 · $226/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 7/10 Severe
• 🌡 Heat 6/10 Major 7 d/yr ≥110°F today · 21 d/yr by 30 yrs out
• 💨 Wind 4/10 Moderate 18% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 3 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $19,901
• − Mortgage interest: −$7,142
• − Property taxes: −$2,711
• − Insurance: −$638
• − Repairs & maintenance: −$1,592
• − Management: −$1,592
• − Depreciation: −$3,709
• Taxable income: $2,517
• Est. tax owed @ 24.0%: −$604
• After-tax cash flow: $3,746/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: Gainesville ISD
• NCES district ID: 4820220
• Math proficiency: 33% ▼ -9.00%
• Reading proficiency: 29% ▼ -2.00%
• Median HH income: $41,772
• Composite: 26.27/100
• National rank: #7252
• State rank: #606 of 826 in TX

Livability — Gainesville

• Score: 66/100
• State rank: #602
• US rank: #11445

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Gainesville, TX
• County: Cooke County · 29,419 people
• City population: 29,419
• Metro: Gainesville, TX
• Population (ZIP): 29,419
• Household income: $71,502
• Rent vs Own: 32.6% rent · 67.4% own
• Severe rent burden: 660.0

Population outlook (Cooke County) Hauer SSP2

• Today (2025): 39,965 people
• By 2030: 39,974 · +0.0%
• By 2040: 39,772 · -0.5%
• By 2050: 39,258 · -1.8%
• By 2075: 37,262 · -6.8%
• By 2100: 33,363 · -16.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (66%)
• Race & ethnicity: White 66% Hispanic / Latino 24% Two or more races 14% Black 5%
• Hispanic origin (detail): Mexican 21%
• Common ancestry: Serbian 2% Lithuanian 2% Slovak 1%
• Foreign-born: 8% · Canada
• Languages at home: 83% English-only · Spanish 16% Other Indo-European 1%

Political lean MEDSL · Cooke

• 2024 margin: Solid R (+66.9) · D 16.2% · R 83.1%
• 2008→2024 swing: -8.2pp toward R · 2008: -58.7pp · 2024: -66.9pp
• All cycles: 2024: R+66.9 2020: R+65.2 2016: R+68.1 2012: R+67.6 2008: R+58.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -198.63%
• Current HPI: 247.3822
• Rent YoY: —
• Metro: Gainesville, 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

-1.9% since first listed

4 events — show timeline

• 2026-06-02 Price Changed $127,500 NTREIS
• 2026-04-23 Listed $130,000 NTREIS
• 2010-05-19 Sold (Public Records) — Public Records
• 2007-04-16 Sold (Public Records) — Public Records

Property tax history

+7.1%/yr

Latest (2025): $2,711 · +10.3% YoY. Source: county tax records.