91 County Road 1218

Daingerfield, TX 75638

$20,000D+

2 bd · 1.0 ba · 912 sqft · Built 1908 · SingleFamily · Active · 30 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $875/mo
• Mortgage (P&I): −$105
• Tax + insurance: −$25
• HOA: −$0
• Vac / Maint / Mgmt: −$184
• Net cashflow: $561/mo
• Annual: $6,734/yr
• Cap rate: 39.96%
• Cash-on-cash: 120.25%
• DSCR: 6.35
• 1% rule: 4.38%
• Cash to close: $5,600

Investor read

• This is a 2-bed/1.0-bath single-family listed at $20k. Condition is rated poor.
• At list price, monthly cash flow is $561 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($875 rent vs $20k).
• It's been on market 30 days — a 2% lower offer ($20k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $20k (1.5% below list) — sets the bar for market timing.
• In year one you build about $760 of equity ($138 loan paydown + $622 appreciation (3.1% local appreciation)).
• Location reads 67/100 on livability (#536 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, amenities F, commute F.
• Daingerfield-Lone Star ISD (town): math 24% / reading 32% proficiency, ranked #679 of 826 in TX (top 82%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 71% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: West El (270 students, 90% FRL); Daingerfield J H (math 26% / reading 30%, grade F, #1,143 of 1,662 statewide, top 69%, 228 students, 86% FRL); Daingerfield H S (math 12% / reading 47%, grade F, #1,112 of 1,632 statewide, top 70%, 297 students, 83% FRL) — zoned schools average 86% FRL vs 71% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1908 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 86 active listings in the ZIP; 3 units permitted in Morris County in 2024 (0 in 5+ unit buildings).
• Morris County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (3.1% appreciation + 3.0% rent growth), your $6k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 40.0% vs local median 3.5% in Daingerfield — 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

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1908 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• Crime grade is F 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: vegetation removal — The overgrown vegetation is a major safety and aesthetic issue.
• Major: landscaping — The overgrown vegetation needs to be trimmed and landscaped to improve curb appeal and safety.