1019 Deaton St

Jacksonville, TX 75766

$69,000B-

3 bd · 3.0 ba · 1,204 sqft · Built 1969 · SingleFamily · Pending · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,070/mo
• Mortgage (P&I): −$362
• Tax + insurance: −$177
• HOA: −$0
• Vac / Maint / Mgmt: −$225
• Net cashflow: $307/mo
• Annual: $3,683/yr
• Cap rate: 11.63%
• Cash-on-cash: 19.06%
• DSCR: 1.85
• 1% rule: 1.55%
• Cash to close: $19,320

Investor read

• This is a 3-bed/3.0-bath single-family listed at $69k.
• At list price, monthly cash flow is $307 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $69k).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $477 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#452 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A; Watch: crime D+, amenities F, commute F.
• Jacksonville ISD (town): math 31% / reading 39% proficiency, ranked #534 of 826 in TX (top 65%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 75% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: East Side El (math 42% / reading 42%, grade F, #1,335 of 4,322 statewide, top 33%, 615 students, 77% FRL); Jacksonville Middle (math 25% / reading 41%, grade F, #930 of 1,662 statewide, top 57%, 711 students, 79% FRL); Jacksonville H S (math 35% / reading 47%, grade F, #774 of 1,632 statewide, top 49%, 1,331 students, 78% FRL) — zoned schools at 78% FRL track the district average.
• Watch-outs: property tax is 2.6% of price.
• Market conditions: 286 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 39 units permitted in Cherokee County in 2024 (0 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~7 years — after that, you're playing with house money.
• Cap rate 11.6% vs local median 2.1% in Jacksonville — 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

• Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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 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.
• 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.