Wells II A Plan

Walker, LA 70726

$236,990D-

4 bd · 2.0 ba · 1,550 sqft · Built — · SingleFamily · Active · 483 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,998/mo
• Mortgage (P&I): −$1,278
• Tax + insurance: −$406
• HOA: −$0
• Vac / Maint / Mgmt: −$420
• Net cashflow: $-105/mo
• Annual: $-1,259/yr
• Cap rate: 5.78%
• Cash-on-cash: -1.85%
• DSCR: 0.92
• 1% rule: 0.82%
• Cash to close: $68,217

Investor read

• This is a 4-bed/2.0-bath single-family listed at $237k. Condition is rated poor.
• At list price, monthly cash flow is $-105 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $228k (3.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $200k (15.7% below list).
• It's been on market 483 days — a 12% lower offer ($209k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $200k (15.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#19 in LA, #3,999 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, amenities D-, commute F.
• Livingston Parish (suburban): math 40% / reading 52% proficiency, ranked #13 of 98 in LA (top 13%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising (+3.8%/yr); 976 active listings in the ZIP; 12 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 42% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 794 units permitted in Livingston Parish in 2024 (99 in 5+ unit buildings).
• Livingston County population projected at +27% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• This rent runs 31% of the median local income ($79k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 483 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Siding appears to be peeling and in poor condition
• Major: interior walls — Paint appears chipped and peeling
• Major: roof — No visible damage, but roof condition is unknown
• Major: windows — No visible damage, but window condition is unknown
• Major: HVAC/mechanicals — No visible damage, but HVAC condition is unknown
• Major: landscaping — Landscaping appears overgrown and in poor condition