4897 Alcorn Rd

Alcorn State University, MS 39096

$135,000D

3 bd · 3.0 ba · 2,185 sqft · Built 1979 · SingleFamily · Active · 446 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,172/mo
• Mortgage (P&I): −$708
• Tax + insurance: −$217
• HOA: −$0
• Vac / Maint / Mgmt: −$246
• Net cashflow: $1/mo
• Annual: $11/yr
• Cap rate: 6.30%
• Cash-on-cash: 0.03%
• DSCR: 1.00
• 1% rule: 0.87%
• Cash to close: $37,800

Investor read

• This is a 3-bed/3.0-bath single-family listed at $135k.
• At list price, monthly cash flow is $1 ($11/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 $117k (13.2% below list).
• It's been on market 446 days — a 12% lower offer ($119k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $117k (13.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.3%/yr); year-one equity from $933 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#224 in MS) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, crime A; Watch: amenities F, commute F, housing F.
• Jefferson County School District (rural): math 7% / reading 13% proficiency, ranked #119 of 130 in MS (top 92%) — 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: Jefferson Co Elem School (math 2% / reading 8%, grade F, #356 of 375 statewide, top 98%, 424 students, 100% FRL); Jefferson Co Jr Hi (math 7% / reading 13%, grade F, #152 of 179 statewide, top 88%, 165 students, 100% FRL); Jefferson Co High (math 17% / reading 17%, grade F, #137 of 197 statewide, top 72%, 313 students, 100% FRL) — zoned schools at 100% FRL track the district average.
• Market conditions: 9 active listings in the ZIP.
• Jefferson County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 7 sale attempts since 2y ago; this cycle's ask has dropped $10k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→19/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 446 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• Built in 1979 — 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.
• 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.