308 N Flag Chapel Rd

Jackson, MS 39209

$6,900C-

3 bd · 1.5 ba · 1,088 sqft · Built 1970 · SingleFamily · Active · 268 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,297/mo
• Mortgage (P&I): −$36
• Tax + insurance: −$23
• HOA: −$0
• Vac / Maint / Mgmt: −$272
• Net cashflow: $965/mo
• Annual: $11,583/yr
• Cap rate: 174.16%
• Cash-on-cash: 599.54%
• DSCR: 27.68
• 1% rule: 18.79%
• Cash to close: $1,932

Investor read

• This is a 3-bed/1.5-bath single-family listed at $7k.
• At list price, monthly cash flow is $965 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $7k).
• It's been on market 268 days — a 12% lower offer ($6k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $6k (12.0% below list) — sets the bar for market timing.
• In year one you build about $738 of equity ($48 loan paydown + $690 appreciation (10.0% local appreciation)).
• Location reads 68/100 on livability (#66 in MS) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: amenities F, employment F, health & safety F.
• Jackson Public School District (urban): math 9% / reading 18% proficiency, ranked #112 of 130 in MS (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 88% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Raines Elementary School (math 2% / reading 12%, grade F, #337 of 375 statewide, top 94%, 224 students, 100% FRL); Bailey Middle Apac School (math 46% / reading 62%, grade B-, #18 of 179 statewide, top 10%, 247 students, 100% FRL); Provine High School (math 4% / reading 15%, grade F, #179 of 197 statewide, top 92%, 774 students, 100% FRL).
• Watch-outs: property tax is 3.5% of price.
• Market conditions: 165 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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.
• 7 sale attempts since 19y ago; this cycle's ask has dropped $9k (57%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $2k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 174.2% vs local median 9.9% in Jackson — 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.
• This rent runs 43% of the median local income ($36k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 268 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?
• 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.