2565 Mcfaddin Ave · Beaumont, TX 77702

$40,000

2 bd · 1.0 ba · 1,232 sqft · SingleFamily public records · 90 Days on market

Built 1962 $32/sqft · 70% below area

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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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +1.5/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

Great Investment Property located in Beaumont's Oaks Historic District.

Key facts

• Listed 90 days

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $40k.

Deal economics

• At list price, monthly cash flow is $507 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($992 rent vs $40k).
• Recommended offer: $38k (6.0% below list) — sets the bar for market timing.
• Cap rate 21.5% vs local median 5.3% in Beaumont — 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 64/100 on livability (#739 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, schools D-, crime F.
• Beaumont ISD (urban): math 14% / reading 22% proficiency, ranked #789 of 826 in TX (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 26 active listings in the ZIP; 29 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 343 units permitted in Jefferson County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $277 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~3 years — after that, you're playing with house money.

Negotiation context

• It's been on market 90 days — a 6% lower offer ($38k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 7y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Risks & watch-outs

• Climate carrying-cost: major flood risk; severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $37,600 (6.0% below list)

Questions for the listing agent

1. It's been on market 90 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1962 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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?
7. 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.
8. 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.
9. 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: 2.48% ✓
• Cap rate: 21.52%
• Cash-on-cash: 54.37%
• DSCR: 3.42
• GRM: 3.4

CMA / ARV

• ARV (median comp): $134,003
• List price: $40,000
• Delta: -70.15%
• Verdict: UNDERPRICED
• Comps: 12 within 1.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: 52.6%
• Equity multiple: 3.31×
• Total profit: $25,853
• Equity at exit: $5,964

10-year hold

• IRR: 57.8%
• Equity multiple: 6.73×
• Total profit: $64,191
• Equity at exit: $3,458

Cash invested: $11,200 (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 77702

• Home prices YoY: -25.3%
• Active inventory: 26
• Price-to-rent: 3.4×

Monthly cashflow live

• Estimated rent: $992 high
• Mortgage (P&I): −$210
• Tax est. 1.5%: −$50 /mo · $600/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$208
• Net cashflow: $507

Break-even live

Break-even rent $350

Max offer price $40,000

Occupancy floor 44%

Sensitivity live

Price	-10% $535	-5% $521	+0% $507	+5% $494	+10% $480
Rent	-10% $429	-5% $468	+0% $507	+5% $547	+10% $586
Rate	-1.0pp $528	-0.5pp $518	base $507	+0.5pp $497	+1.0pp $487

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: $10,000
• Closing costs: $1,200
• Reserves months: —
• Total cash needed: —

Rent comps 29 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
2556 Broadway Unit 2558 Beaumont, TX	1.0	1.0	757	$697	$0.92	44d	1	0.08mi
2640 Harrison Ave Beaumont, TX	3.0	1.0	1158	$1,295	$1.12	24d	1	0.30mi
2329 Broadway Unit 2337-02 Beaumont, TX	2.0	1.0	990	$999	$1.01	24d	1	0.32mi
2329 Broadway Unit 2290-06 Beaumont, TX	2.0	1.0	990	$999	$1.01	14d	1	0.32mi
2445 South St Beaumont, TX	1.0	1.0	720	$700	$0.97	44d	1	0.33mi
2281 North St Unit 2281 Beaumont, TX	1.0	1.0	800	$850	$1.06	44d	1	0.38mi
2275 Harrison Ave Unit 15 Beaumont, TX	2.0	1.0	880	$875	$0.99	44d	1	0.43mi
2275 Harrison Ave Unit 14 Beaumont, TX	2.0	1.0	880	$875	$0.99	24d	1	0.43mi
2350 Pecos St Unit B Beaumont, TX	1.0	1.0	980	$935	$0.95	24d	1	0.43mi
880 N 7th St Unit 10 Beaumont, TX	2.0	1.0	880	$875	$0.99	44d	1	0.43mi
2248 Hazel St Beaumont, TX	2.0	1.5	950	$795	$0.84	44d	1	0.46mi
2290 Long Ave Unit 05 Beaumont, TX	2.0	1.0	1055	$950	$0.90	24d	1	0.50mi
705 N 5th St Beaumont, TX	2.0	1.0	900	$800	$0.89	14d	1	0.54mi
1160 N 7th St Beaumont, TX	1.0	1.0	700	$600	$0.86	14d	1	0.56mi
2260 Ashley St Beaumont, TX	3.0	2.0	1471	$1,595	$1.08	14d	1	0.56mi
355 N 18th St Beaumont, TX	3.0	2.0	1050	$1,395	$1.33	44d	1	0.74mi
2570 Sweetgum Ln Beaumont, TX	1.0–2.0	1.0–1.5	876	$1,599	$1.82	14d	15	0.86mi
1215 Longfellow Dr Beaumont, TX	1.0–2.0	1.0–2.0	834	$1,545	$1.85	14d	15	0.90mi
3720 Laurel St #6 Beaumont, TX	2.0	1.5	1152	$1,095	$0.95	14d	1	0.91mi
3720 Laurel Ave Unit Laurel Ave unit 12 Beaumont, TX	2.0	1.5	1188	$1,095	$0.92	24d	1	0.92mi
565 24th St Beaumont, TX	2.0	1.0	849	$1,125	$1.33	44d	1	1.12mi
2020 Cottonwood St Beaumont, TX	2.0–4.0	1.0	928	$1,123	$1.21	14d	9	1.14mi
995 Center St Beaumont, TX	1.0	1.0	720	$650	$0.90	24d	1	1.17mi
994-1/2 Center St Beaumont, TX	1.0	1.0	720	$600	$0.83	14d	1	1.18mi
565 25th St Beaumont, TX	2.0	2.0	1128	$1,650	$1.46	14d	1	1.18mi
1860 Forsythe St Unit 1860 Beaumont, TX	2.0	1.0	700	$800	$1.14	21d	1	1.37mi
690 E Avenue Unit A Beaumont, TX	3.0	1.0	1300	$975	$0.75	14d	1	1.37mi
690 E AVE Unit B Beaumont, TX	1.0	1.0	700	$875	$1.25	14d	1	1.37mi
5110 Laurel St Beaumont, TX	3.0	2.0	1303	$1,995	$1.53	21d	1	1.47mi

Listing history 6 events

1. 2026-05-12
   status Pending 71-char remark

   Show marketing remark (71 chars)

   Great Investment Property located in Beaumont's Oaks Historic District.

2. 2026-02-11
   listed $40,000 Active 71-char remark

   Show marketing remark (71 chars)

   Great Investment Property located in Beaumont's Oaks Historic District.

3. 2019-08-01
   soldstatus
4. 2019-05-02
   soldstatus
5. 2019-02-28
   soldstatus 255-char remark

   Show marketing remark (255 chars)

   Investor Special! Two rental properties (3 units in all) bundled together for $99,000. All of them are located in the Oaks Historic District and are cash flowing. Potential for more with upgrades. See additional property at mls listing 2466 Hazel (29161).

6. 2019-02-22
   listed $40,000 255-char remark

   Show marketing remark (255 chars)

   Investor Special! Two rental properties (3 units in all) bundled together for $99,000. All of them are located in the Oaks Historic District and are cash flowing. Potential for more with upgrades. See additional property at mls listing 2466 Hazel (29161).

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 6/10 Major FEMA zone X · 74% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 9/10 Extreme 7 d/yr ≥109°F today · 24 d/yr by 30 yrs out
• 💨 Wind 9/10 Extreme 99% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $11,907
• − Mortgage interest: −$2,241
• − Property taxes: −$600
• − Insurance: −$200
• − Repairs & maintenance: −$953
• − Management: −$953
• − Depreciation: −$1,164
• Taxable income: $5,798
• Est. tax owed @ 24.0%: −$1,391
• After-tax cash flow: $4,698/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: Beaumont ISD
• NCES district ID: 4809670
• Math proficiency: 14% ▼ -13.00%
• Reading proficiency: 22% ▼ -7.00%
• Median HH income: $41,683
• Composite: 15.43/100
• National rank: #9316
• State rank: #789 of 826 in TX

Livability — Beaumont

• Score: 64/100
• State rank: #739
• US rank: #13710

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Beaumont, TX
• City population: 125,901
• Population (ZIP): 3,497

Population outlook (Jefferson County) Hauer SSP2

• Today (2025): 259,015 people
• By 2030: 260,685 · +0.6%
• By 2040: 263,309 · +1.7%
• By 2050: 265,237 · +2.4%
• By 2075: 270,193 · +4.3%
• By 2100: 255,628 · -1.3%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Highly diverse neighborhood (Simpson 0.73)
• Race & ethnicity: Black 31% Hispanic / Latino 30% White 27% Two or more races 18% Asian 8%
• Hispanic origin (detail): Mexican 28%
• Common ancestry: Lithuanian 2% Slovak 2% Serbian 1%
• Foreign-born: 21% · Canada
• Languages at home: 73% English-only · Spanish 25% Arabic 1%

Political lean MEDSL · Jefferson

• 2024 margin: Lean R (+8.9) · D 45.1% · R 54.0%
• 2008→2024 swing: -11.1pp toward R · 2008: 2.2pp · 2024: -8.9pp
• All cycles: 2024: R+8.9 2020: R+1.6 2016: R+0.5 2012: D+1.6 2008: D+2.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -46.58%
• Current HPI: 137.5454
• 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

+0.0% since first listed

6 events — show timeline

• 2026-05-12 Pending — BBOR
• 2026-02-11 Listed $40,000 BBOR
• 2019-08-01 Sold (Public Records) — Public Records
• 2019-05-02 Sold (Public Records) — Public Records
• 2019-02-28 Sold (MLS) — BBOR
• 2019-02-22 Listed $40,000 BBOR

Property tax history

+5.1%/yr

Latest (2025): $2,252 · +8.9% YoY. Source: county tax records.