2618 Isabel St

Houma, LA 70363

$170,000B+

None bd · None ba · 4,132 sqft · Built — · MultiFamily · Active · 149 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,511/mo
• Mortgage (P&I): −$891
• Tax + insurance: −$350
• HOA: −$0
• Vac / Maint / Mgmt: −$947
• Net cashflow: $2,322/mo
• Annual: $27,869/yr
• Cap rate: 23.16%
• Cash-on-cash: 60.22%
• DSCR: 3.68
• 1% rule: 2.65%
• Cash to close: $47,600

Investor read

• This is a 2×2bd/1ba + 1×1bd/1ba + 1×3bd/1.5ba units multifamily listed at $170k. Condition is rated fair.
• At list price, monthly cash flow is $2k ($28k/yr) — positive. Per door: $581/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $170k).
• It's been on market 149 days — a 12% lower offer ($150k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $150k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#165 in LA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A; Watch: employment D, crime D-, amenities F.
• Terrebonne Parish (other): math 32% / reading 46% proficiency, ranked #23 of 98 in LA (top 24%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Acadian Elementary School (math 36% / reading 34%, grade F, #280 of 646 statewide, top 44%, 617 students, 75% FRL); Oaklawn Middle School (math 18% / reading 37%, grade F, #127 of 218 statewide, top 60%, 587 students, 66% FRL); South Terrebonne High School (math 38% / reading 47%, grade F, #68 of 265 statewide, top 25%, 914 students, 52% FRL) — zoned schools at 64% FRL track the district average.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 206 active listings in the ZIP; 300 units permitted in Terrebonne Parish in 2024 (0 in 5+ unit buildings).
• 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 $48k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk; severe wind risk, 99% 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.
• Cap rate 23.2% vs local median 4.0% in Houma — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• It's been on market 149 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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?

Repairs flagged (vision-AI assessment)

• Major: Appliances — Old and worn, likely not functioning properly
• Major: Bathrooms — Dated fixtures and paint need updating
• Major: Exterior siding — Wear and tear, may need repainting or replacement
• Major: Windows — Old and may need replacement
• Major: HVAC — No visible signs of recent maintenance