407 E Kolstad St · Palestine, TX 75801

$124,500

3 bd · 2.0 ba · 2,139 sqft · SingleFamily public records · 53 Days on market

Built 1900 0.71 ac lot $58/sqft · 42% below area Est $215k · 42% under ↓ 4% since listing

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Why this score? — see what drove the C+ 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 +23.4/30.0
• ARV discount +15.0/15.0
• DSCR +7.5/10.0
• 1% rule +7.2/10.0
• Livability +3.3/5.0
• Schools +3.0/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Charming historic fixer-upper on an oversized lot ready to be restored! Features high ceilings and some original floors. This home sits on over 3/4 of an acre and is located in a historical neighborhood known for large historical homes and beautiful landscaping. A unique property ready to be brought back to its former glory! To be sold As Is.

Key facts

• Original floors
• Oversized lot
• High ceilings

Tags

• OVERSIZED LOT
• HIGH CEILINGS
• ORIGINAL FLOORS
• HISTORICAL NEIGHBORHOOD
• LARGE HISTORICAL HOMES
• BEAUTIFUL LANDSCAPING

Property features AI

Exterior

• Parking: Attached carport; Additional parking; 2-space carport
• Utilities: Public water; Public sewer
• Home design: Residential property; Built in 1900; Pillar/post/pier foundation; Composition roof
• Exterior features: Front porch

Interior

• Bedrooms: Primary bedroom (first floor); Additional bedrooms (first floor)
• Flooring: Vinyl flooring; Wood flooring
• Bathrooms: 2 full bathrooms
• Heating & cooling: Central heating (electric); Central air conditioning (electric)
• Interior features: High ceilings; Wood burning fireplace (1)

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $124k.

Deal economics

• At list price, monthly cash flow is $230 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $124k).
• Recommended offer: $121k (3.0% below list) — sets the bar for market timing.
• Cap rate 8.5% vs local median 3.9% in Palestine — 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 66/100 on livability (#657 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D+, employment D, amenities F.
• Palestine ISD (town): math 36% / reading 37% proficiency, ranked #509 of 826 in TX (top 62%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Palestine H S (math 44% / reading 41%, grade F, #721 of 1,632 statewide, top 45%, 998 students, 77% FRL).
• Market conditions: 196 active listings in the ZIP; 29 units permitted in Anderson County in 2024 (0 in 5+ unit buildings).
• This rent runs 32% of the median local income ($57k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $861 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Anderson County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

Negotiation context

• It's been on market 53 days — a 3% lower offer ($121k) is reasonable based on typical stale-listing flexibility.
• 4 sale attempts 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

• Watch-outs: property tax is 2.5% of price; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major wind risk, 74% chance of damaging wind over 30y; extreme-heat days projected 7→27/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $120,765 (3.0% below list)

Questions for the listing agent

1. It's been on market 53 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 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
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 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?
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: 1.22% ✓
• Cap rate: 8.51%
• Cash-on-cash: 7.90%
• DSCR: 1.35
• GRM: 6.9

CMA / ARV

• ARV (median comp): $215,000
• List price: $124,500
• Delta: -42.09%
• Verdict: UNDERPRICED
• Comps: 17 within 1.0 mi

Show comp detail 2 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1011 N John St	0.36mi	3/2.0	2,204 (+3%)	18mo	$260,000	$118	63
1011 S Sycamore St	0.27mi	3/2.0	2,436 (+14%)	4mo	$289,000	$119	60

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

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

5-year hold

• IRR: -4.2%
• Equity multiple: 0.84×
• Total profit: $-5,469
• Equity at exit: $18,563

10-year hold

• IRR: 5.6%
• Equity multiple: 1.41×
• Total profit: $14,417
• Equity at exit: $10,764

Cash invested: $34,860 (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 75801

• Home prices YoY: -35.0%
• Active inventory: 196
• Price-to-rent: 6.9×

Monthly cashflow live

• Estimated rent: $1,514 medium
• Mortgage (P&I): −$653
• Tax from tax record: −$261 /mo · $3,138/yr
• Insurance: −$52
• HOA: −$0
• Vacancy / Maint / Mgmt: −$318
• Net cashflow: $230

Break-even live

Break-even rent $1,223

Max offer price $124,500

Occupancy floor 80%

Sensitivity live

Price	-10% $300	-5% $265	+0% $230	+5% $194	+10% $159
Rent	-10% $110	-5% $170	+0% $230	+5% $289	+10% $349
Rate	-1.0pp $292	-0.5pp $261	base $230	+0.5pp $197	+1.0pp $164

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: $31,125
• Closing costs: $3,735
• Reserves months: —
• Total cash needed: —

Listing history 22 events

1. 2026-06-19
   days on market $124,500 Active 53 DOM
2. 2026-06-18
   days on market $124,500 Active 52 DOM
3. 2026-06-17
   days on market $124,500 Active 51 DOM
4. 2026-06-16
   days on market $124,500 Active 50 DOM
5. 2026-06-15
   days on market $124,500 Active 49 DOM
6. 2026-06-14
   days on market $124,500 Active 47 DOM
7. 2026-06-12
   days on market $124,500 Active 46 DOM
8. 2026-06-09
   days on market $124,500 Active 43 DOM
9. 2026-06-08
   days on market $124,500 Active 42 DOM
10. 2026-06-07
    days on market $124,500 Active 41 DOM
11. 2026-06-04
    days on market $124,500 Active 37 DOM
12. 2026-06-03
    price $124,500 Active 36 DOM
13. 2026-06-02
    days on market $129,500 Active 36 DOM
14. 2026-06-01
    days on market $129,500 Active 35 DOM
15. 2026-05-31
    days on market $129,500 Active 34 DOM
16. 2026-05-31
    days on market $129,500 Active 33 DOM
17. 2026-04-27
    listed $129,500 Active
18. 2026-04-27
    listed $129,500 Active
19. 2026-04-24
    listed $129,500 Active
20. 2026-03-27
    listed $129,500 Active
21. 2012-12-28
    soldstatus
22. 1996-10-11
    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: $3,138 · $261/mo
• Projected year-2 tax: $3,138 · $261/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ 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 4/10 Moderate
• 🌡 Heat 7/10 Severe 7 d/yr ≥111°F today · 27 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 74% chance of damaging wind over 30 yrs
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $18,163
• − Mortgage interest: −$6,974
• − Property taxes: −$3,138
• − Insurance: −$622
• − Repairs & maintenance: −$1,453
• − Management: −$1,453
• − Depreciation: −$3,622
• Taxable income: $901
• Est. tax owed @ 24.0%: −$216
• After-tax cash flow: $2,538/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: Palestine ISD
• NCES district ID: 4834050
• Math proficiency: 36% ▼ -12.00%
• Reading proficiency: 37% ▼ -1.00%
• Median HH income: $36,881
• Composite: 30.34/100
• National rank: #6267
• State rank: #509 of 826 in TX

Livability — Palestine

• Score: 66/100
• State rank: #657
• US rank: #12357

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Palestine, TX
• County: Anderson County · 17,531 people
• City population: 17,531
• Metro: Palestine, TX
• Population (ZIP): 17,531
• Household income: $56,787
• Rent vs Own: 38.0% rent · 62.0% own
• Severe rent burden: 609.0

Population outlook (Anderson County) Hauer SSP2

• Today (2025): 56,663 people
• By 2030: 57,373 · +1.3%
• By 2040: 58,960 · +4.1%
• By 2050: 59,073 · +4.3%
• By 2075: 53,737 · -5.2%
• By 2100: 42,516 · -25.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.67)
• Race & ethnicity: White 48% Black 27% Hispanic / Latino 17% Two or more races 15% Native American 3%
• Hispanic origin (detail): Mexican 12%
• Common ancestry: Lithuanian 2% Iranian 1% Slovak 1%
• Foreign-born: 8% · Canada
• Languages at home: 85% English-only · Spanish 12%

Political lean MEDSL · Anderson

• 2024 margin: Solid R (+61.8) · D 18.8% · R 80.6%
• 2008→2024 swing: -18.3pp toward R · 2008: -43.5pp · 2024: -61.8pp
• All cycles: 2024: R+61.8 2020: R+58.0 2016: R+58.1 2012: R+52.2 2008: R+43.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -83.17%
• Current HPI: 154.6138
• Rent YoY: —
• Metro: Palestine, 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

-3.9% since first listed

10 events — show timeline

• 2026-06-02 Price Changed $124,500 NTREIS
• 2026-06-02 Price Changed $124,500 HARMLS
• 2026-06-02 Price Changed $124,500 GTAR
• 2026-06-02 Price Changed $124,500 PAOR
• 2026-04-27 Listed $129,500 HARMLS
• 2026-04-27 Listed $129,500 NTREIS
• 2026-04-24 Listed $129,500 GTAR
• 2026-03-27 Listed $129,500 PAOR
• 2012-12-28 Sold (Public Records) — Public Records
• 1996-10-11 Sold (Public Records) — Public Records

Property tax history

+9.9%/yr

Latest (2025): $3,138 · +19.7% YoY. Source: county tax records.