502 W Belknap St

Jacksboro, TX 76458

$42,000D+

2 bd · 1.0 ba · 984 sqft · Built 1950 · SingleFamily · Pending · 443 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,300/mo
• Mortgage (P&I): −$220
• Tax + insurance: −$535
• HOA: −$0
• Vac / Maint / Mgmt: −$483
• Net cashflow: $1,062/mo
• Annual: $12,740/yr
• Cap rate: 48.81%
• Cash-on-cash: 151.86%
• DSCR: 7.76
• 1% rule: 5.48%
• Cash to close: $11,760

Investor read

• This is a 2-bed/1.0-bath single-family listed at $42k.
• At list price, monthly cash flow is $1k ($13k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $42k).
• It's been on market 443 days — a 12% lower offer ($37k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $37k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.3%/yr); year-one equity from $290 of loan paydown is wiped out by about $556 of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#753 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: health & safety C-, amenities F, commute F.
• Jacksboro ISD (town): math 42% / reading 42% proficiency, ranked #337 of 826 in TX (top 41%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Jacksboro El (math 39% / reading 36%, grade F, #1,744 of 4,322 statewide, top 41%, 497 students, 68% FRL); Jacksboro Middle (math 44% / reading 40%, grade D-, #572 of 1,662 statewide, top 36%, 251 students, 68% FRL); Jacksboro H S (math 47% / reading 57%, grade D+, #447 of 1,632 statewide, top 29%, 335 students, 68% FRL) — zoned schools average 68% FRL vs 44% district-wide (24 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 2.6% of price; flood insurance adds $427/mo; built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 127 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 10 units permitted in Jack County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts; this cycle's ask has dropped $73k (63%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-1.3% appreciation + 3.0% rent growth), your $12k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); 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.
• Cap rate 48.8% vs local median 3.8% in Jacksboro — 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 443 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1950 — 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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 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?
• 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?