1222 Mississippi Ave

Tallulah, LA 71282

$56,105D+

3 bd · 2.0 ba · 2,025 sqft · Built — · SingleFamily · Active · 347 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,444/mo
• Mortgage (P&I): −$294
• Tax + insurance: −$109
• HOA: −$0
• Vac / Maint / Mgmt: −$513
• Net cashflow: $1,527/mo
• Annual: $18,329/yr
• Cap rate: 38.96%
• Cash-on-cash: 116.68%
• DSCR: 6.19
• 1% rule: 4.36%
• Cash to close: $15,709

Investor read

• This is a 3-bed/2.0-bath single-family listed at $56k.
• At list price, monthly cash flow is $2k ($18k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $56k).
• It's been on market 347 days — a 12% lower offer ($49k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $49k (12.0% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($388 loan paydown + $1k appreciation (1.9% local appreciation)).
• Location reads 61/100 on livability (#230 in LA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety D, schools F, amenities F.
• Madison Parish (town): math 3% / reading 10% proficiency, ranked #98 of 98 in LA (top 100%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 87% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 25 active listings in the ZIP; 2 units permitted in Madison Parish in 2024 (0 in 5+ unit buildings).
• Madison County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 20y ago; this cycle's ask has dropped $72k (56%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (1.9% appreciation + 3.0% rent growth), your $16k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• It's been on market 347 days. Have you received any prior offers? Is the seller open to a 12% 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.
• 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.