147 Madisonville Dr

Canton, MS 39046

$283,900D

3 bd · 2.0 ba · 1,531 sqft · Built 2026 · SingleFamily · Active · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,500/mo
• Mortgage (P&I): −$1,453
• Tax + insurance: −$462
• HOA: −$33
• Vac / Maint / Mgmt: −$525
• Net cashflow: $27/mo
• Annual: $323/yr
• Cap rate: 6.41%
• Cash-on-cash: 0.42%
• DSCR: 1.02
• 1% rule: 0.90%
• Cash to close: $77,591

Investor read

• This is a 3-bed/2.0-bath single-family listed at $284k. Condition is rated poor.
• At list price, monthly cash flow is $27 ($323/yr) — positive.
• To cash-flow at today's rent, offer at most $281k (1.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $250k (11.9% below list).
• It's been on market 73 days — a 6% lower offer ($267k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $250k (11.9% 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 $8k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#229 in MS) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime B+; Watch: amenities F, commute F, employment F.
• Madison County School District (rural): math 54% / reading 54% proficiency, ranked #3 of 130 in MS (top 2%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Madison Crossing Elementary (math 52% / reading 55%, grade C, #49 of 375 statewide, top 13%, 775 students, 100% FRL); Germantown Middle School (math 55% / reading 58%, grade B, #14 of 179 statewide, top 7%, 1,008 students, 100% FRL); Germantown High School (math 34% / reading 41%, grade F, #59 of 197 statewide, top 30%, 1,396 students, 100% FRL) — zoned schools average 100% FRL vs 29% district-wide (70 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 363 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 553 units permitted in Madison County in 2024 (0 in 5+ unit buildings).
• Madison County population projected at +34% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 6.4% vs local median 4.0% in Canton — 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.

Questions for listing agent

• It's been on market 73 days. Have you received any prior offers? Is the seller open to a 12% 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — The roof is not yet finished, indicating significant work is needed.
• Major: exterior walls — The exterior walls are not yet finished, with visible construction materials.