405 Springdale Dr

Columbus, MS 39702

$76,320B-

3 bd · 1.0 ba · 1,732 sqft · Built 1980 · SingleFamily · Active · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,582/mo
• Mortgage (P&I): −$400
• Tax + insurance: −$212
• HOA: −$0
• Vac / Maint / Mgmt: −$332
• Net cashflow: $637/mo
• Annual: $7,646/yr
• Cap rate: 16.31%
• Cash-on-cash: 35.78%
• DSCR: 2.59
• 1% rule: 2.07%
• Cash to close: $21,370

Investor read

• This is a 3-bed/1.0-bath single-family listed at $76k.
• At list price, monthly cash flow is $637 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $76k).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $528 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#219 in MS) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A, crime B+; Watch: health & safety D, amenities F, commute F.
• Columbus Municipal School District (town): math 9% / reading 17% proficiency, ranked #113 of 130 in MS (top 87%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 84% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Cook Elementary School (math 8% / reading 22%, grade F, #274 of 375 statewide, top 74%, 388 students, 100% FRL); Columbus Middle School (math 8% / reading 15%, grade F, #149 of 179 statewide, top 84%, 667 students, 100% FRL); Columbus High School (math 10% / reading 16%, grade F, #155 of 197 statewide, top 80%, 898 students, 100% FRL) — zoned schools average 100% FRL vs 84% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 2.8% of price.
• Market conditions: 10 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 130 units permitted in Lowndes County in 2024 (0 in 5+ unit buildings).
• Lowndes County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 48% 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.
• This rent runs 35% of the median local income ($55k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.
• 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.