Reims V B Plan

Hammond, LA 70403

$272,990F

3 bd · 2.0 ba · 1,887 sqft · Built — · SingleFamily · Active · 947 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,005/mo
• Mortgage (P&I): −$1,773
• Tax + insurance: −$564
• HOA: −$0
• Vac / Maint / Mgmt: −$421
• Net cashflow: $-753/mo
• Annual: $-9,035/yr
• Cap rate: 3.62%
• Cash-on-cash: -9.54%
• DSCR: 0.58
• 1% rule: 0.59%
• Cash to close: $94,690

Investor read

• This is a 3-bed/2.0-bath single-family listed at $273k. Condition is rated good.
• At list price, monthly cash flow is $-753 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $229k (16.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $201k (26.5% below list).
• It's been on market 947 days — a 12% lower offer ($240k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $201k (26.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#77 in LA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+; Watch: amenities C-, commute D+, crime F.
• Tangipahoa Parish (rural): math 18% / reading 29% proficiency, ranked #63 of 98 in LA (top 64%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 73% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Hammond Eastside Magnet (math 22% / reading 35%, grade F, #350 of 646 statewide, top 55%, 1,343 students, 68% FRL); Greenville Park Leadership Academy (math 8% / reading 12%, grade F, #199 of 218 statewide, top 92%, 447 students, 86% FRL); Hammond High Magnet School (math 19% / reading 28%, grade F, #167 of 265 statewide, top 63%, 1,750 students, 64% FRL) — zoned schools at 73% FRL track the district average.
• Market conditions: Rents flat; 474 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); 1,085 units permitted in Tangipahoa Parish in 2024 (378 in 5+ unit buildings).
• Tangipahoa County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 3.6% vs local median 4.9% in Hammond — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $2,005/mo this rent would consume 47% of the median local household income ($51k/yr) — very limited rent-growth headroom before tenants either downsize or default.

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 947 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
• 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 D-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?
• 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.