2342 Highway 606

St. Joseph, LA 71366

$175,000D

4 bd · 3.0 ba · 2,008 sqft · Built — · SingleFamily · Active · 87 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,339/mo
• Mortgage (P&I): −$918
• Tax + insurance: −$296
• HOA: −$0
• Vac / Maint / Mgmt: −$281
• Net cashflow: $-157/mo
• Annual: $-1,879/yr
• Cap rate: 6.08%
• Cash-on-cash: -0.77%
• DSCR: 0.97
• 1% rule: 0.76%
• Cash to close: $49,000

Investor read

• This is a 4-bed/3.0-bath single-family listed at $175k.
• At list price, monthly cash flow is $-157 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $147k (15.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $134k (23.5% below list).
• It's been on market 87 days — a 6% lower offer ($164k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $134k (23.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-2.5%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Tensas Parish (rural): math 36% / reading 50% proficiency, ranked #102 of 122 in LA (top 84%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 89% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Tensas Elementary School (math 22% / reading 22%, grade F, #415 of 646 statewide, top 67%, 178 students, 83% FRL); Tensas High School (math 2% / reading 12%, grade F, #251 of 265 statewide, top 97%, 169 students, 83% FRL).
• Zoned-school proficiency averages 15% at this address vs 43% district-wide (-28 pts) — the specific schools serving this property underperform the Tensas Parish average; the district grade overstates school quality for this exact location.
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: 12 active listings in the ZIP.
• Tensas County population projected at -44% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 22y ago; this cycle's ask has dropped $20k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $69k; list at $175k implies a 154% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 87 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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?
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?
• What's the documented flood / surge / shoreline-erosion history here (FEMA AND non-FEMA — e.g., storm surge, creek backup, septic-field saturation)?