3840 Morton-rankin County Line Rd Unit 1-11, 13

Morton, MS 39117

$260,000B+

33 bd · 18.7 ba · 11,000 sqft · Built 1954 · MultiFamily · Pending · 193 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,966/mo
• Mortgage (P&I): −$1,363
• Tax + insurance: −$433
• HOA: −$0
• Vac / Maint / Mgmt: −$2,093
• Net cashflow: $6,076/mo
• Annual: $72,916/yr
• Cap rate: 34.34%
• Cash-on-cash: 100.16%
• DSCR: 5.46
• 1% rule: 3.83%
• Cash to close: $72,800

Investor read

• This is a 11 × 3-bed/?-bath units multifamily listed at $260k. Condition is rated fair.
• At list price, monthly cash flow is $6k ($73k/yr) — positive. Per door: $552/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $260k).
• It's been on market 193 days — a 12% lower offer ($229k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $229k (12.0% below list) — sets the bar for market timing.
• In year one you build about $17k of equity ($2k loan paydown + $15k appreciation (6.0% local appreciation)).
• Location reads 59/100 on livability (#249 in MS) — a working-class tenant base; expect higher turnover. Strengths: crime A+, cost of living A+, housing A; Watch: schools F, amenities F, commute F.
• Scott County School District (rural): math 30% / reading 28% proficiency, ranked #71 of 130 in MS (top 55%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 76% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1954 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 36 active listings in the ZIP; 19 units permitted in Scott County in 2024 (5 in 5+ unit buildings).
• Scott County population projected at -10% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 2y ago; this cycle's ask has dropped $55k (17%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (6.0% appreciation + 3.0% rent growth), your $73k cash investment doubles in ~1 year — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$43k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate flood risk; severe wind risk, 80% 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

• It's been on market 193 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1954 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?

Repairs flagged (vision-AI assessment)

• Major: roof — Signs of significant wear
• Major: exterior siding — Weathered and peeling
• Major: flooring — Worn and in need of replacement
• Major: interior walls — Painted walls with visible wear
• Major: bathrooms — Needs updating
• Major: kitchen — Needs updating