18575 East Main St

Galliano, LA 70354

$37,500B+

2 bd · 2.0 ba · 1,800 sqft · Built 1965 · SingleFamily · Active · 247 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,067/mo
• Mortgage (P&I): −$197
• Tax + insurance: −$548
• HOA: −$0
• Vac / Maint / Mgmt: −$224
• Net cashflow: $99/mo
• Annual: $1,187/yr
• Cap rate: 23.11%
• Cash-on-cash: 60.05%
• DSCR: 3.67
• 1% rule: 2.85%
• Cash to close: $10,500

Investor read

• This is a 2-bed/2.0-bath single-family listed at $38k.
• At list price, monthly cash flow is $99 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $38k).
• It's been on market 247 days — a 12% lower offer ($33k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $33k (12.0% below list) — sets the bar for market timing.
• In year one you build about $917 of equity ($259 loan paydown + $658 appreciation (1.8% local appreciation)).
• Location reads 68/100 on livability (#96 in LA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety B+; Watch: crime D-, amenities F, commute F.
• Lafourche Parish (other): math 31% / reading 49% proficiency, ranked #22 of 98 in LA (top 22%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Golden Meadow Lower Elementary School (167 students, 74% FRL); Golden Meadow Middle School (math 24% / reading 53%, grade F, #69 of 218 statewide, top 33%, 341 students, 77% FRL); South Lafourche High School (math 33% / reading 59%, grade D-, #54 of 265 statewide, top 20%, 1,108 students, 61% FRL) — zoned schools average 71% FRL vs 55% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 3.4% of price; flood insurance adds $427/mo.
• Market conditions: 40 active listings in the ZIP; 319 units permitted in Lafourche Parish in 2024 (0 in 5+ unit buildings).
• 4 sale attempts since 8y ago; this cycle's ask has dropped $22k (37%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (1.8% appreciation + 3.0% rent growth), your $10k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 23.1% vs local median 2.4% in Galliano — 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 247 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1965 — 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?
• 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.
• Schools are B-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 D 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?