10736 Arkabutla Rd

Arkabutla, MS 38618

$86,700B

3 bd · 1.0 ba · 1,757 sqft · Built 1943 · SingleFamily · Active · 86 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,271/mo
• Mortgage (P&I): −$455
• Tax + insurance: −$96
• HOA: −$0
• Vac / Maint / Mgmt: −$267
• Net cashflow: $454/mo
• Annual: $5,446/yr
• Cap rate: 12.57%
• Cash-on-cash: 22.43%
• DSCR: 2.00
• 1% rule: 1.47%
• Cash to close: $24,276

Investor read

• This is a 3-bed/1.0-bath single-family listed at $87k.
• At list price, monthly cash flow is $454 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $87k).
• It's been on market 86 days — a 6% lower offer ($81k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $81k (6.0% below list) — sets the bar for market timing.
• In year one you build about $927 of equity ($599 loan paydown + $328 appreciation (0.4% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Tate County School District (rural): math 28% / reading 27% proficiency, ranked #74 of 130 in MS (top 57%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Strayhorn Elementary School (math 34% / reading 37%, grade F, #150 of 375 statewide, top 40%, 406 students, 99% FRL); Strayhorn High School (math 32% / reading 32%, grade F, #80 of 197 statewide, top 42%, 309 students, 99% FRL) — zoned schools average 99% FRL vs 69% district-wide (30 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1943 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 75 active listings in the ZIP; 114 units permitted in Tate County in 2024 (0 in 5+ unit buildings).
• Tate County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (0.4% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: 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 86 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1943 — 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.
• 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.