541 Pecan St

Marks, MS 38646

$124,900D+

3 bd · 1.0 ba · 1,196 sqft · Built 1950 · Other · Active · 60 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,078/mo
• Mortgage (P&I): −$655
• Tax + insurance: −$144
• HOA: −$0
• Vac / Maint / Mgmt: −$226
• Net cashflow: $53/mo
• Annual: $635/yr
• Cap rate: 6.80%
• Cash-on-cash: 1.82%
• DSCR: 1.08
• 1% rule: 0.86%
• Cash to close: $34,972

Investor read

• This is a 3-bed/1.0-bath other listed at $125k.
• At list price, monthly cash flow is $53 ($635/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $108k (13.7% below list).
• It's been on market 60 days — a 3% lower offer ($121k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $108k (13.7% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($864 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 65/100 on livability (#115 in MS) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Quitman County School District (town): math 16% / reading 20% proficiency, ranked #98 of 130 in MS (top 75%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 98% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Quitman County Elementary School (math 27% / reading 22%, grade F, #221 of 375 statewide, top 60%, 365 students, 100% FRL); Quitman County Middle School (math 12% / reading 19%, grade F, #132 of 179 statewide, top 74%, 272 students, 100% FRL); M. S. Palmer High School (math 15% / reading 15%, grade F, #148 of 197 statewide, top 76%, 215 students, 100% FRL) — zoned schools at 100% FRL track the district average.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 2 units permitted in Quitman County in 2024 (0 in 5+ unit buildings).
• Quitman County population projected at -35% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 3y 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.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $35k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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 60 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.