1407 E Wells Ave · Sherman, TX 75090

$50,000

1 bd · 1.0 ba · 420 sqft · SingleFamily public records · 37 Days on market

Built 1920 6,011 sqft lot

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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 +3.1/5.0
• Schools +2.9/10.0
• Condition / age +2.5/5.0
• Rent growth +1.8/5.0
• Appreciation +0.0/10.0

Listing remarks

Opportunity awaits on this generously sized property offering exceptional potential for redevelopment, investment, or a complete renovation project. The property includes an existing 1-bedroom, 1-bath home that will require substantial repairs and updates to restore habitability. Utilities are currently off and the structure is being sold as-is. Buyers and agents should use caution when entering the property. With land value at the forefront, this is an ideal chance to build new, reimagine the existing footprint, or secure a property with future potential in a growing area. Bring your vision and explore the possibilities this unique property has to offer. Interior measurements are estimates

Key facts

• Substantial repairs
• Future potential
• Existing home

Tags

• GENEROUSLY SIZED PROPERTY
• COMPLETE RENOVATION PROJECT
• EXISTING HOME
• SUBSTANTIAL REPAIRS
• FUTURE POTENTIAL
• UNIQUE PROPERTY

Property features AI

Finance

• Other: Lot was subdivided; Soil type: unknown
• Financial info: Listing accepts cash and conventional financing; Listing is an exclusive right to sell agreement; Special listing condition: probate listing; Loan type: Treat as clear; No second mortgage indicated
• HOA & community: No association

Exterior

• Parking: No garage; On-site parking available; Street parking available; No covered or carport spaces
• Security: Video surveillance present
• Utilities: City water; City sewer; Not in a municipal utility district
• Home design: Single family residence; Residential property; One story; Property is not attached; No accessory unit; Unknown encumbrances noted
• Construction: Wood construction; Built in 1920; Preowned
• Exterior features: Interior lot in a subdivision; Subdivision: Hams Frank South Highland

Interior

• Kitchen: No appliances included
• Bedrooms: Primary bedroom on level 1 (approx. 10 x 10)
• Bathrooms: 1 full bathroom
• Heating & cooling: Wall/window unit(s) for cooling
• Interior features: Eat-in kitchen; One living area; Two total rooms
• Laundry & utility: No dedicated laundry appliances listed

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath single-family listed at $50k.

Deal economics

• At list price, monthly cash flow is $484 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $50k).
• Recommended offer: $48k (3.0% below list) — sets the bar for market timing.
• Cap rate 17.9% vs local median 3.7% in Sherman — 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 61/100 on livability (#1,027 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime C-, employment C-, amenities F.
• Sherman ISD (urban): math 31% / reading 37% proficiency, ranked #546 of 826 in TX (top 66%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Crutchfield El (math 27% / reading 22%, grade F, #3,052 of 4,322 statewide, top 74%, 408 students, 89% FRL) — zoned schools average 89% FRL vs 60% district-wide (29 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents soft (-2.7%/yr); 473 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 2,272 units permitted in Grayson County in 2024 (750 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $346 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Grayson County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 0.0% rent growth), your $14k cash investment doubles in ~3 years — after that, you're playing with house money.

Negotiation context

• It's been on market 37 days — a 3% lower offer ($48k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: 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 $48,500 (3.0% below list)

Questions for the listing agent

1. It's been on market 37 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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.
6. 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.
7. 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: 2.01% ✓
• Cap rate: 17.90%
• Cash-on-cash: 41.45%
• DSCR: 2.84
• GRM: 4.1

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: 34.7%
• Equity multiple: 2.41×
• Total profit: $19,744
• Equity at exit: $7,455

10-year hold

• IRR: 40.0%
• Equity multiple: 4.25×
• Total profit: $45,436
• Equity at exit: $4,323

Cash invested: $14,000 (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 75090

• Home prices YoY: -20.0%
• Rents YoY: -2.7%
• Active inventory: 473
• Price-to-rent: 4.1×

Monthly cashflow live

• Estimated rent: $1,006 medium
• Mortgage (P&I): −$262
• Tax from tax record: −$28 /mo · $337/yr
• Insurance: −$21
• HOA: −$0
• Vacancy / Maint / Mgmt: −$211
• Net cashflow: $484

Break-even live

Break-even rent $394

Max offer price $50,000

Occupancy floor 47%

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: $12,500
• Closing costs: $1,500
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1434 S Rusk St Sherman, TX	—	1.0	300	$750	$2.50	21d	1	1.35mi
1434 S Rusk St Unit C Sherman, TX	1.0	1.0	300	$800	$2.67	44d	1	1.35mi

Listing history 18 events

1. 2026-06-19
   days on market $50,000 Active 37 DOM
2. 2026-06-18
   days on market $50,000 Active 36 DOM
3. 2026-06-17
   days on market $50,000 Active 35 DOM
4. 2026-06-16
   days on market $50,000 Active 34 DOM
5. 2026-06-15
   days on market $50,000 Active 33 DOM
6. 2026-06-14
   days on market $50,000 Active 31 DOM
7. 2026-06-13
   days on market $50,000 Active 30 DOM
8. 2026-06-10
   days on market $50,000 Active 28 DOM
9. 2026-06-09
   days on market $50,000 Active 27 DOM
10. 2026-06-08
    days on market $50,000 Active 26 DOM
11. 2026-06-07
    days on market $50,000 Active 25 DOM
12. 2026-06-03
    days on market $50,000 Active 21 DOM
13. 2026-06-02
    days on market $50,000 Active 20 DOM
14. 2026-06-01
    days on market $50,000 Active 19 DOM
15. 2026-05-31
    days on market $50,000 Active 18 DOM
16. 2026-05-30
    days on market $50,000 Active 17 DOM
17. 2026-05-12
    listed $50,000 Active 703-char remark
18. 1998-11-03
    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: $337 · $28/mo
• Projected year-2 tax: $915 · $76/mo
• Expected delta: +$578/yr (+$48/mo · 171.6%)

ⓘ 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 6/10 Major 7 d/yr ≥108°F today · 22 d/yr by 30 yrs out
• 💨 Wind 4/10 Moderate 23% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $12,072
• − Mortgage interest: −$2,801
• − Property taxes: −$337
• − Insurance: −$250
• − Repairs & maintenance: −$966
• − Management: −$966
• − Depreciation: −$1,455
• Taxable income: $5,298
• Est. tax owed @ 24.0%: −$1,271
• After-tax cash flow: $4,532/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: Sherman ISD
• NCES district ID: 4840080
• Math proficiency: 31% ▼ -9.00%
• Reading proficiency: 37% ▼ -2.00%
• Median HH income: $42,587
• Composite: 28.79/100
• National rank: #6665
• State rank: #546 of 826 in TX

Livability — Sherman

• Score: 61/100
• State rank: #1027
• US rank: #18243

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Sherman, TX
• County: Grayson County · 108,053 people
• City population: 54,936
• Metro: Sherman-Denison, TX
• Population (ZIP): 26,594
• Household income: $55,543
• Rent vs Own: 42.8% rent · 57.2% own
• Severe rent burden: 840.0

Population outlook (Grayson County) Hauer SSP2

• Today (2025): 134,540 people
• By 2030: 138,653 · +3.1%
• By 2040: 145,958 · +8.5%
• By 2050: 151,218 · +12.4%
• By 2075: 161,802 · +20.3%
• By 2100: 159,036 · +18.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.64)
• Race & ethnicity: White 49% Hispanic / Latino 32% Two or more races 17% Black 11%
• Hispanic origin (detail): Mexican 26%
• Common ancestry: Slovak 2% Romanian 2% Lithuanian 1%
• Foreign-born: 15% · Canada
• Languages at home: 73% English-only · Spanish 24% German/W. Germanic 1% Other Indo-European 1%

Political lean MEDSL · Grayson

• 2024 margin: Solid R (+54.3) · D 22.5% · R 76.7%
• 2008→2024 swing: -16.4pp toward R · 2008: -37.9pp · 2024: -54.3pp
• All cycles: 2024: R+54.3 2020: R+49.9 2016: R+53.1 2012: R+48.0 2008: R+37.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -69.00%
• Current HPI: 276.5739
• Rent YoY: ▼ -2.70%
• Metro: Sherman-Denison, TX
• 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

2 events — show timeline

• 2026-05-12 Listed $50,000 NTREIS
• 1998-11-03 Sold (Public Records) — Public Records

Property tax history

+2.3%/yr

Latest (2025): $337 · +10.0% YoY. Source: county tax records.