1421 County Road 232

Chalybeate, MS 38674

$55,900B

2 bd · 1.5 ba · 1,232 sqft · Built 1981 · SingleFamily · Active · 36 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,017/mo
• Mortgage (P&I): −$293
• Tax + insurance: −$63
• HOA: −$0
• Vac / Maint / Mgmt: −$213
• Net cashflow: $447/mo
• Annual: $5,361/yr
• Cap rate: 15.88%
• Cash-on-cash: 34.25%
• DSCR: 2.52
• 1% rule: 1.82%
• Cash to close: $15,652

Investor read

• This is a 2-bed/1.5-bath single-family listed at $56k.
• At list price, monthly cash flow is $447 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $56k).
• It's been on market 36 days — a 3% lower offer ($54k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $54k (3.0% below list) — sets the bar for market timing.
• In year one you build about $997 of equity ($386 loan paydown + $611 appreciation (1.1% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• North Tippah School District (rural): math 31% / reading 36% proficiency, ranked #59 of 130 in MS (top 45%) — 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.
• Market conditions: 13 active listings in the ZIP; 10 units permitted in Tippah County in 2024 (0 in 5+ unit buildings).
• Tippah County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts since 10y 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 (1.1% appreciation + 3.0% rent growth), your $16k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: moderate wind risk, 23% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→20/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 36 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• 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.