1508 Hwy 135

Overton, TX 75684

$80,000B

2 bd · 2.0 ba · 1,632 sqft · Built 1930 · SingleFamily · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,375/mo
• Mortgage (P&I): −$420
• Tax + insurance: −$133
• HOA: −$0
• Vac / Maint / Mgmt: −$289
• Net cashflow: $533/mo
• Annual: $6,401/yr
• Cap rate: 14.29%
• Cash-on-cash: 28.57%
• DSCR: 2.27
• 1% rule: 1.72%
• Cash to close: $22,400

Investor read

• This is a 2-bed/2.0-bath single-family listed at $80k. Condition is rated fair.
• At list price, monthly cash flow is $533 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $80k).
• It's been on market 16 days — a 2% lower offer ($79k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $79k (1.5% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($553 loan paydown + $2k appreciation (3.0% local appreciation)).
• Location reads 69/100 on livability (#432 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, crime A; Watch: amenities F, commute F, employment F.
• Arp ISD (rural): math 37% / reading 43% proficiency, ranked #400 of 826 in TX (top 48%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Arp El (math 32% / reading 37%, grade F, #1,995 of 4,322 statewide, top 50%, 473 students, 60% FRL); Arp J H (math 30% / reading 45%, grade F, #736 of 1,662 statewide, top 45%, 219 students, 62% FRL); Arp H S (math 72% / reading 57%, grade B-, #199 of 1,632 statewide, top 14%, 293 students, 40% FRL) — zoned schools at 54% FRL track the district average.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 70 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 595 units permitted in Smith County in 2024 (45 in 5+ unit buildings).
• Smith County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~3 years — after that, you're playing with house money.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1930 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — The roof appears to be in poor condition, with visible wear and tear.
• Major: exterior siding — The exterior siding is peeling and in need of repainting or replacement.
• Major: flooring — The flooring in the interior appears to be carpeted and in need of replacement.
• Major: interior walls — The interior walls show signs of wear and tear, with some areas appearing to be in need of repainting or repair.
• Major: landscaping — The landscaping and fencing appear to be in poor condition, with overgrown vegetation and a lack of maintenance.