228 Aileen Dr

Columbus, MS 39705

$240,000F

3 bd · 1.0 ba · 1,701 sqft · Built 1981 · SingleFamily · Active · 97 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,430/mo
• Mortgage (P&I): −$1,259
• Tax + insurance: −$259
• HOA: −$0
• Vac / Maint / Mgmt: −$300
• Net cashflow: $-387/mo
• Annual: $-4,645/yr
• Cap rate: 4.36%
• Cash-on-cash: -6.91%
• DSCR: 0.69
• 1% rule: 0.60%
• Cash to close: $67,200

Investor read

• This is a 3-bed/1.0-bath single-family listed at $240k.
• At list price, monthly cash flow is $-387 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $172k (28.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $143k (40.4% below list).
• It's been on market 97 days — a 9% lower offer ($218k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $143k (40.4% 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 $7k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#219 in MS) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A, crime B+; Watch: health & safety D, amenities F, commute F.
• Columbus Municipal School District (town): math 9% / reading 17% proficiency, ranked #113 of 130 in MS (top 87%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 84% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Cook Elementary School (math 8% / reading 22%, grade F, #274 of 375 statewide, top 74%, 388 students, 100% FRL); Columbus Middle School (math 8% / reading 15%, grade F, #149 of 179 statewide, top 84%, 667 students, 100% FRL); Columbus High School (math 10% / reading 16%, grade F, #155 of 197 statewide, top 80%, 898 students, 100% FRL) — zoned schools average 100% FRL vs 84% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 13 active listings in the ZIP; 130 units permitted in Lowndes County in 2024 (0 in 5+ unit buildings).
• Lowndes County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Climate carrying-cost: major wind risk, 47% chance of damaging wind over 30y; 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

• 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 97 days. Have you received any prior offers? Is the seller open to a 40% 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 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.
• 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.