Banbury IV H - Garden Lot Plan

Youngsville, LA 70592

$247,990D

3 bd · 2.0 ba · 1,659 sqft · Built — · SingleFamily · Active · 557 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,201/mo
• Mortgage (P&I): −$1,379
• Tax + insurance: −$438
• HOA: −$0
• Vac / Maint / Mgmt: −$462
• Net cashflow: $-79/mo
• Annual: $-949/yr
• Cap rate: 5.93%
• Cash-on-cash: -1.29%
• DSCR: 0.94
• 1% rule: 0.84%
• Cash to close: $73,643

Investor read

• This is a 3-bed/2.0-bath single-family listed at $248k. Condition is rated excellent.
• At list price, monthly cash flow is $-79 ($-949/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $220k (11.3% below list).
• It's been on market 557 days — a 12% lower offer ($218k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $218k (12.0% below list) — sets the bar for market timing.
• 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 78/100 on livability (#8 in LA, #2,614 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Lafayette Parish (urban): math 38% / reading 46% proficiency, ranked #19 of 98 in LA (top 19%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: J. Wallace James Elementary School (math 46% / reading 49%, grade D, #147 of 646 statewide, top 23%, 939 students, 64% FRL); Youngsville Middle School (math 42% / reading 52%, grade D+, #37 of 218 statewide, top 18%, 646 students, 49% FRL); O. Comeaux High School (math 38% / reading 40%, grade F, #86 of 265 statewide, top 33%, 1,098 students, 56% FRL) — zoned schools at 56% FRL track the district average.
• Market conditions: Rents rising (+1.6%/yr); 811 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 1,585 units permitted in Lafayette Parish in 2024 (10 in 5+ unit buildings).
• Lafayette County population projected at +34% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 5.9% vs local median 4.8% in Youngsville — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 557 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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?
• 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.
• 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.