90 Knottingham St

Texarkana, TX 75501

$54,900B-

3 bd · 2.5 ba · 1,870 sqft · Built 2004 · SingleFamily · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,256/mo
• Mortgage (P&I): −$288
• Tax + insurance: −$60
• HOA: −$0
• Vac / Maint / Mgmt: −$264
• Net cashflow: $644/mo
• Annual: $7,732/yr
• Cap rate: 20.38%
• Cash-on-cash: 50.30%
• DSCR: 3.24
• 1% rule: 2.29%
• Cash to close: $15,372

Investor read

• This is a 3-bed/2.5-bath single-family listed at $55k.
• At list price, monthly cash flow is $644 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $55k).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $380 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#93 in TX, #3,241 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities D+, crime D, employment D.
• Liberty-Eylau ISD (urban): math 19% / reading 23% proficiency, ranked #772 of 826 in TX (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Liberty-Eylau El (math 20% / reading 16%, grade F, #3,785 of 4,322 statewide, top 88%, 575 students, 90% FRL); Liberty-Eylau Middle (math 19% / reading 21%, grade F, #1,428 of 1,662 statewide, top 87%, 573 students, 89% FRL); Liberty-Eylau H S (math 17% / reading 37%, grade F, #1,204 of 1,632 statewide, top 75%, 532 students, 77% FRL) — zoned schools average 85% FRL vs 68% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+1.6%/yr); 326 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 137 units permitted in Bowie County in 2024 (5 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 1.6% rent growth), your $15k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 20.4% vs local median 4.3% in Texarkana — 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.
• This rent runs 33% of the median local income ($46k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• 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?
• 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.