1376 Fred St

Prentiss, MS 39474

$69,900B

3 bd · 1.0 ba · 1,285 sqft · Built 1960 · SingleFamily · Pending · 14 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,823/mo
• Mortgage (P&I): −$367
• Tax + insurance: −$187
• HOA: −$0
• Vac / Maint / Mgmt: −$593
• Net cashflow: $1,677/mo
• Annual: $20,124/yr
• Cap rate: 35.08%
• Cash-on-cash: 102.82%
• DSCR: 5.57
• 1% rule: 4.04%
• Cash to close: $19,572

Investor read

• This is a 3-bed/1.0-bath single-family listed at $70k.
• At list price, monthly cash flow is $2k ($20k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $70k).
• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $670 of equity ($483 loan paydown + $187 appreciation (0.3% local appreciation)).
• Location reads 61/100 on livability (#204 in MS) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+; Watch: housing C-, health & safety D, schools F.
• Jefferson Davis County School District (rural): math 14% / reading 20% proficiency, ranked #104 of 130 in MS (top 80%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 97% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: property tax is 2.7% of price.
• Market conditions: 46 active listings in the ZIP.
• Jefferson Davis County population projected at -35% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 5y 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.
• Current owner paid $28k; list at $70k implies a 150% gain — meaningful room to come down on a strong offer.
• At projected returns (0.3% appreciation + 3.0% rent growth), your $20k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 97% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1960 — 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?
• 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.
• 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.