705 Deerfield Dr

Oxford, MS 38655

$385,000D

4 bd · 1.0 ba · 1,551 sqft · Built 1997 · SingleFamily · Active · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,039/mo
• Mortgage (P&I): −$2,019
• Tax + insurance: −$372
• HOA: −$0
• Vac / Maint / Mgmt: −$638
• Net cashflow: $10/mo
• Annual: $119/yr
• Cap rate: 6.32%
• Cash-on-cash: 0.11%
• DSCR: 1.00
• 1% rule: 0.79%
• Cash to close: $107,800

Investor read

• This is a 4-bed/1.0-bath single-family listed at $385k.
• At list price, monthly cash flow is $10 ($119/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $304k (21.1% below list).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $304k (21.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 87/100 on livability (#1 in MS, #285 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A+; Watch: employment C-.
• Lafayette County School District (town): math 47% / reading 40% proficiency, ranked #29 of 130 in MS (top 22%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lafayette Upper Elementary School (math 46% / reading 39%, grade F, #105 of 375 statewide, top 28%, 823 students, 100% FRL); Lafayette Middle School (math 45% / reading 42%, grade D, #46 of 179 statewide, top 25%, 447 students, 99% FRL); Lafayette High School (math 53% / reading 42%, grade D, #28 of 197 statewide, top 14%, 868 students, 100% FRL) — zoned schools average 100% FRL vs 49% district-wide (50 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+4.8%/yr); 857 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 503 units permitted in Lafayette County in 2024 (0 in 5+ unit buildings).
• Lafayette County population projected at +61% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 4y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.3% vs local median 2.8% in Oxford — 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.
• At $3,039/mo this rent would consume 53% of the median local household income ($68k/yr) (locally 1892% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.