5089 U.s. 98

Fernwood, MS 39648

$2,900,000C+

3 bd · 2.0 ba · 1,260 sqft · Built 2016 · MultiFamily · Active · 62 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $36,989/mo
• Mortgage (P&I): −$15,208
• Tax + insurance: −$4,833
• HOA: −$0
• Vac / Maint / Mgmt: −$7,768
• Net cashflow: $9,180/mo
• Annual: $110,161/yr
• Cap rate: 10.09%
• Cash-on-cash: 13.57%
• DSCR: 1.60
• 1% rule: 1.28%
• Cash to close: $812,000

Investor read

• This is a 3-bed/2.0-bath multifamily listed at $2.90M. Condition is rated fair.
• At list price, monthly cash flow is $9k ($110k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($37k rent vs $2.90M).
• It's been on market 62 days — a 6% lower offer ($2.73M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.73M (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $20k of loan paydown is wiped out by about $87k of value loss. Plan a longer hold.
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• North Pike School District (town): math 25% / reading 32% proficiency, ranked #69 of 130 in MS (top 53%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 190 active listings in the ZIP; 10 units permitted in Pike County in 2024 (0 in 5+ unit buildings).
• Pike County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $812k cash investment doubles in ~9 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→22/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 62 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Repairs flagged (vision-AI assessment)

• Major: exterior paint — Peeling paint indicates significant wear and tear.
• Moderate: roof inspection — No visible damage, but may need inspection for leaks or damage.
• Major: flooring replacement — Worn flooring may need replacement for a better living experience.
• Major: interior wall repainting — Significant discoloration and wear on interior walls.
• Minor: HVAC maintenance — No visible signs of major issues, but may need maintenance.
• Minor: landscaping maintenance — Basic landscaping with some overgrown areas, may need trimming and planting.