2589 Bayou Dularge Rd

Dulac, LA 70397

$110,000C+

3 bd · 2.0 ba · 1,384 sqft · Built 1964 · Other · Active · 527 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,214/mo
• Mortgage (P&I): −$577
• Tax + insurance: −$555
• HOA: −$0
• Vac / Maint / Mgmt: −$255
• Net cashflow: $-173/mo
• Annual: $-2,078/yr
• Cap rate: 9.06%
• Cash-on-cash: 9.87%
• DSCR: 1.44
• 1% rule: 1.10%
• Cash to close: $30,800

Investor read

• This is a 3-bed/2.0-bath other listed at $110k.
• At list price, monthly cash flow is $-173 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $79k (27.8% below list).
• Meets the 1% rule at list price ($1k rent vs $110k).
• It's been on market 527 days — a 12% lower offer ($97k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $79k (27.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-2.0%/yr); year-one equity from $761 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 53/100 on livability (#395 in LA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Terrebonne Parish (other): math 32% / reading 46% proficiency, ranked #23 of 98 in LA (top 24%) — 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.
• Zoned schools: Dularge Elementary School (math 57% / reading 72%, grade B, #40 of 646 statewide, top 7%, 298 students, 74% FRL); Houma Junior High School (math 23% / reading 49%, grade F, #84 of 218 statewide, top 41%, 729 students, 56% FRL); Terrebonne High School (math 38% / reading 41%, grade F, #80 of 265 statewide, top 32%, 1,386 students, 49% FRL) — zoned schools at 60% FRL track the district average.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 33 active listings in the ZIP; 300 units permitted in Terrebonne Parish in 2024 (0 in 5+ unit buildings).
• 5 sale attempts since 2y ago; this cycle's ask has dropped $55k (33%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $48k; list at $110k implies a 127% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.1% vs local median 1.4% in Dulac — 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.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 527 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• Built in 1964 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?