155 Main St

Raleigh, MS 39153

$66,500B

4 bd · 1.5 ba · 2,153 sqft · Built 1933 · Other · Active · 249 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,185/mo
• Mortgage (P&I): −$349
• Tax + insurance: −$179
• HOA: −$0
• Vac / Maint / Mgmt: −$249
• Net cashflow: $409/mo
• Annual: $4,903/yr
• Cap rate: 13.67%
• Cash-on-cash: 26.33%
• DSCR: 2.17
• 1% rule: 1.78%
• Cash to close: $18,620

Investor read

• This is a 4-bed/1.5-bath other listed at $66k.
• At list price, monthly cash flow is $409 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $66k).
• It's been on market 249 days — a 12% lower offer ($59k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $59k (12.0% below list) — sets the bar for market timing.
• In year one you build about $714 of equity ($460 loan paydown + $254 appreciation (0.4% local appreciation)).
• Location reads 60/100 on livability (#216 in MS) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Smith County School District (rural): math 35% / reading 35% proficiency, ranked #55 of 130 in MS (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Raleigh Elementary School (math 23% / reading 39%, grade F, #185 of 375 statewide, top 49%, 587 students, 100% FRL); Raleigh High School (math 47% / reading 35%, grade F, #49 of 197 statewide, top 25%, 442 students, 99% FRL) — zoned schools average 99% FRL vs 58% district-wide (42 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 2.7% of price; built in 1933 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 12 active listings in the ZIP.
• Smith County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 15y ago; this cycle's ask has dropped $27k (29%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (0.4% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 249 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1933 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?
• 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.