17400 Highway 22

Clinton, MS 39209

$565,000D-

4 bd · 4.0 ba · 4,074 sqft · Built 2007 · SingleFamily · Active · 350 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,502/mo
• Mortgage (P&I): −$2,963
• Tax + insurance: −$517
• HOA: −$0
• Vac / Maint / Mgmt: −$315
• Net cashflow: $-2,293/mo
• Annual: $-27,519/yr
• Cap rate: 1.42%
• Cash-on-cash: -17.40%
• DSCR: 0.23
• 1% rule: 0.27%
• Cash to close: $158,200

Investor read

• This is a 4-bed/4.0-bath single-family listed at $565k.
• At list price, monthly cash flow is $-2k ($-28k/yr) — negative.
• To cash-flow at today's rent, offer at most $160k (71.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $150k (73.4% below list).
• It's been on market 350 days — a 12% lower offer ($497k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $150k (73.4% below list) — sets the bar for 1% rule.
• In year one you build about $60k of equity ($4k loan paydown + $56k appreciation (10.0% local appreciation)).
• Location reads 69/100 on livability (#49 in MS) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Clinton Public School District (rural): math 58% / reading 53% proficiency, ranked #4 of 130 in MS (top 3%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 165 active listings in the ZIP; lower-income renter base — watch delinquency; 167 units permitted in Hinds County in 2024 (0 in 5+ unit buildings).
• Hinds County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 2y 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.
• By year 2, paydown + projected appreciation supports a ~$97k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 73% chance of damaging wind over 30y; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 1.4% vs local median 4.3% in Clinton — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $1,502/mo this rent would consume 50% of the median local household income ($36k/yr) (locally 1627% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 350 days. Have you received any prior offers? Is the seller open to a 73% 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 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.