508 Gathings Ave · Covington, TX 76636

$175,000

2 bd · 1.0 ba · 924 sqft · SingleFamily public records · 238 Days on market

Built 1979 7,754 sqft lot $189/sqft · at area comps Est $182k · at est.

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Why this score? — see what drove the D 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 +9.5/30.0
• ARV discount +9.3/15.0
• Appreciation +6.2/10.0
• Schools +3.7/10.0
• Livability +3.1/5.0
• 1% rule +2.7/10.0
• DSCR +2.7/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

REDUCED! Charming 2 bedroom 1 bath home remodeled in 2021. Property features large bedrooms, open living area, fenced backyard, and separate laundry room. Updated kitchen has spacious granite kitchen countertops and ample kitchen cabinets. Additional updates 2021 included tiled shower, insulation, ceiling fans, flooring, hvac, windows, and more. An ideal property for those seeking the comfort and relaxed pace of a small town life!

Key facts

• Ceiling fans
• Updated hvac
• Fenced backyard

Tags

• FENCED BACKYARD
• SEPARATE LAUNDRY ROOM
• AMPLE KITCHEN CABINETS
• TILED SHOWER
• CEILING FANS
• UPDATED HVAC

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $175k.

Deal economics

• At list price, monthly cash flow is $-121 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $154k (12.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $135k (22.9% below list).
• Recommended offer: $135k (22.9% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 61/100 on livability (#991 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing B+; Watch: health & safety D+, schools D, crime F.
• Covington ISD (rural): math 45% / reading 35% proficiency, ranked #698 of 1,141 in TX (top 61%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 47 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 65 units permitted in Hill County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $6k of equity ($1k loan paydown + $4k appreciation (2.5% local appreciation)).
• Hill County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 7, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 238 days — a 12% lower offer ($154k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 7y ago; this cycle's ask has dropped $10k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $135,000 (22.9% below list)

Questions for the listing agent

1. What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
2. It's been on market 238 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
3. Built in 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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?
8. 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?
9. 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.
10. 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.
11. 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: 0.77% ✗
• Cap rate: 5.47%
• Cash-on-cash: -2.95%
• DSCR: 0.87
• GRM: 10.8

CMA / ARV

• ARV (median comp): $182,289
• List price: $175,000
• Delta: -4.00%
• Verdict: FAIR
• Comps: 3 within 1.0 mi

Projected returns pro-forma

2.48% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 3.2%
• Equity multiple: 1.18×
• Total profit: $8,651
• Equity at exit: $73,631

10-year hold

• IRR: 6.8%
• Equity multiple: 1.97×
• Total profit: $47,641
• Equity at exit: $109,690

Cash invested: $49,000 (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 76636

• Home prices YoY: 1.0%
• Active inventory: 47
• Price-to-rent: 10.8×

Monthly cashflow live

• Estimated rent: $1,350 medium
• Mortgage (P&I): −$918
• Tax from tax record: −$197 /mo · $2,358/yr
• Insurance: −$73
• HOA: −$0
• Vacancy / Maint / Mgmt: −$284
• Net cashflow: $-121

Break-even live

Break-even rent $1,503

Max offer price $153,688

Occupancy floor —

Sensitivity live

Price	-10% $-22	-5% $-71	+0% $-121	+5% $-170	+10% $-220
Rent	-10% $-227	-5% $-174	+0% $-121	+5% $-67	+10% $-14
Rate	-1.0pp $-33	-0.5pp $-76	base $-121	+0.5pp $-166	+1.0pp $-212

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: $43,750
• Closing costs: $5,250
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
120 Hill County Road 4105 Unit 4105 Covington, TX	2.0	1.0	640	$1,350	$2.11	23d	1	1.42mi

Listing history 31 events

1. 2026-06-21
   days on market $175,000 Active 238 DOM
2. 2026-06-21
   days on market $175,000 Active 237 DOM
3. 2026-06-18
   days on market $175,000 Active 235 DOM
4. 2026-06-17
   days on market $175,000 Active 234 DOM
5. 2026-06-16
   days on market $175,000 Active 233 DOM
6. 2026-06-15
   days on market $175,000 Active 232 DOM
7. 2026-06-13
   days on market $175,000 Active 230 DOM
8. 2026-06-12
   days on market $175,000 Active 229 DOM
9. 2026-06-09
   days on market $175,000 Active 226 DOM
10. 2026-06-08
    days on market $175,000 Active 225 DOM
11. 2026-06-08
    days on market $175,000 Active 224 DOM
12. 2026-06-05
    days on market $175,000 Active 222 DOM
13. 2026-06-03
    days on market $175,000 Active 220 DOM
14. 2026-06-02
    days on market $175,000 Active 219 DOM
15. 2026-06-01
    days on market $175,000 Active 218 DOM
16. 2026-05-31
    days on market $175,000 Active 217 DOM
17. 2026-04-18
    price $175,000 435-char remark

    Show marketing remark (435 chars)

    REDUCED! Charming 2 bedroom 1 bath home remodeled in 2021. Property features large bedrooms, open living area, fenced backyard, and separate laundry room. Updated kitchen has spacious granite kitchen countertops and ample kitchen cabinets. Additional updates 2021 included tiled shower, insulation, ceiling fans, flooring, hvac, windows, and more. An ideal property for those seeking the comfort and relaxed pace of a small town life!

18. 2026-01-21
    price $179,900 435-char remark

    Show marketing remark (435 chars)

    REDUCED! Charming 2 bedroom 1 bath home remodeled in 2021. Property features large bedrooms, open living area, fenced backyard, and separate laundry room. Updated kitchen has spacious granite kitchen countertops and ample kitchen cabinets. Additional updates 2021 included tiled shower, insulation, ceiling fans, flooring, hvac, windows, and more. An ideal property for those seeking the comfort and relaxed pace of a small town life!

19. 2025-10-25
    listed $185,000 Active 435-char remark

    Show marketing remark (435 chars)

    REDUCED! Charming 2 bedroom 1 bath home remodeled in 2021. Property features large bedrooms, open living area, fenced backyard, and separate laundry room. Updated kitchen has spacious granite kitchen countertops and ample kitchen cabinets. Additional updates 2021 included tiled shower, insulation, ceiling fans, flooring, hvac, windows, and more. An ideal property for those seeking the comfort and relaxed pace of a small town life!

20. 2022-02-25
    soldstatus Closed 482-char remark

    Show marketing remark (482 chars)

    Come and See!! This adorable remodeled home with 2 bedrooms, 1 bath. Cute kitchen with granite counters, new flooring, fresh paint, updated bathroom, and all appliances included as well as washer and dryer. Nice fenced backyard that is perfect for your kids or pets to play. Small town community. home has 4 inches of Insulation thought the home including the attic. new windows or energy efficient vinyl, new heat and air. Don't miss out on this opportunity to own your own home.

21. 2021-12-08
    status Pending 482-char remark

    Show marketing remark (482 chars)

    Come and See!! This adorable remodeled home with 2 bedrooms, 1 bath. Cute kitchen with granite counters, new flooring, fresh paint, updated bathroom, and all appliances included as well as washer and dryer. Nice fenced backyard that is perfect for your kids or pets to play. Small town community. home has 4 inches of Insulation thought the home including the attic. new windows or energy efficient vinyl, new heat and air. Don't miss out on this opportunity to own your own home.

22. 2021-11-24
    historical Active Option Contract 482-char remark

    Show marketing remark (482 chars)

    Come and See!! This adorable remodeled home with 2 bedrooms, 1 bath. Cute kitchen with granite counters, new flooring, fresh paint, updated bathroom, and all appliances included as well as washer and dryer. Nice fenced backyard that is perfect for your kids or pets to play. Small town community. home has 4 inches of Insulation thought the home including the attic. new windows or energy efficient vinyl, new heat and air. Don't miss out on this opportunity to own your own home.

23. 2021-09-24
    price $159,000 482-char remark

    Show marketing remark (482 chars)

    Come and See!! This adorable remodeled home with 2 bedrooms, 1 bath. Cute kitchen with granite counters, new flooring, fresh paint, updated bathroom, and all appliances included as well as washer and dryer. Nice fenced backyard that is perfect for your kids or pets to play. Small town community. home has 4 inches of Insulation thought the home including the attic. new windows or energy efficient vinyl, new heat and air. Don't miss out on this opportunity to own your own home.

24. 2021-09-03
    listed $160,000 Active 482-char remark

    Show marketing remark (482 chars)

    Come and See!! This adorable remodeled home with 2 bedrooms, 1 bath. Cute kitchen with granite counters, new flooring, fresh paint, updated bathroom, and all appliances included as well as washer and dryer. Nice fenced backyard that is perfect for your kids or pets to play. Small town community. home has 4 inches of Insulation thought the home including the attic. new windows or energy efficient vinyl, new heat and air. Don't miss out on this opportunity to own your own home.

25. 2019-07-26
    soldstatus Sold
26. 2019-04-29
    soldstatus
27. 2019-04-22
    status Pending
28. 2019-04-10
    price $37,000
29. 2019-03-25
    price $42,000
30. 2019-03-11
    listed $49,000 Active
31. 2001-09-06
    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: $2,358 · $197/mo
• Projected year-2 tax: $3,202 · $267/mo
• Expected delta: +$844/yr (+$70/mo · 35.8%)

ⓘ 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 6/10 Major
• 🌡 Heat 7/10 Severe 7 d/yr ≥110°F today · 22 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $16,200
• − Mortgage interest: −$9,803
• − Property taxes: −$2,358
• − Insurance: −$875
• − Repairs & maintenance: −$1,296
• − Management: −$1,296
• − Depreciation: −$5,091
• Taxable loss: −$4,519
• Est. tax savings @ 24.0%: +$1,084
• After-tax cash flow: $-363/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: Covington ISD
• NCES district ID: 4815480
• Math proficiency: 45% ▬ 0.00%
• Reading proficiency: 35% ▼ -5.00%
• Median HH income: $50,773
• Composite: 37.01/100
• National rank: #9086
• State rank: #698 of 1141 in TX

Livability — Covington

• Score: 61/100
• State rank: #991
• US rank: #17655

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Covington, TX
• Population (ZIP): 1,678

Population outlook (Hill County) Hauer SSP2

• Today (2025): 34,013 people
• By 2030: 33,289 · -2.1%
• By 2040: 31,688 · -6.8%
• By 2050: 30,100 · -11.5%
• By 2075: 26,818 · -21.2%
• By 2100: 22,918 · -32.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (86%)
• Race & ethnicity: White 86% Hispanic / Latino 12% Two or more races 6% Asian 1%
• Hispanic origin (detail): Mexican 9%
• Common ancestry: Lithuanian 2% Scotch-Irish 1% Serbian 1%
• Foreign-born: 3% · Canada, China
• Languages at home: 93% English-only · Spanish 5% German/W. Germanic 1% Chinese 1%

Political lean MEDSL · Hill

• 2024 margin: Solid R (+64.4) · D 17.5% · R 81.8%
• 2008→2024 swing: -23.0pp toward R · 2008: -41.4pp · 2024: -64.4pp
• All cycles: 2024: R+64.4 2020: R+60.7 2016: R+58.4 2012: R+53.0 2008: R+41.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 2.48%
• Current HPI: 255.7467
• Rent YoY: —
• Metro: —
• 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

+257.1% since first listed

15 events — show timeline

• 2026-04-18 Price Changed $175,000 NTREIS
• 2026-01-21 Price Changed $179,900 NTREIS
• 2025-10-25 Listed $185,000 NTREIS
• 2022-02-25 Sold (MLS) — NTREIS
• 2021-12-08 Pending — NTREIS
• 2021-11-24 Contingent — NTREIS
• 2021-09-24 Price Changed $159,000 NTREIS
• 2021-09-03 Listed $160,000 NTREIS
• 2019-07-26 Sold (MLS) — NTREIS
• 2019-04-29 Sold (Public Records) — Public Records
• 2019-04-22 Pending — NTREIS
• 2019-04-10 Price Changed $37,000 NTREIS
• 2019-03-25 Price Changed $42,000 NTREIS
• 2019-03-11 Listed $49,000 NTREIS
• 2001-09-06 Sold (Public Records) — Public Records

Property tax history

+17.5%/yr

Latest (2025): $2,358 · -9.2% YoY. Source: county tax records.