1288 Scr 59

Mize, MS 39116

$115,000D

2 bd · 2.0 ba · 800 sqft · Built 2023 · SingleFamily · Active · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $880/mo
• Mortgage (P&I): −$603
• Tax + insurance: −$154
• HOA: −$0
• Vac / Maint / Mgmt: −$185
• Net cashflow: $-62/mo
• Annual: $-742/yr
• Cap rate: 6.34%
• Cash-on-cash: 0.17%
• DSCR: 1.01
• 1% rule: 0.77%
• Cash to close: $32,200

Investor read

• This is a 2-bed/2.0-bath single-family listed at $115k.
• At list price, monthly cash flow is $-62 ($-742/yr) — negative.
• To cash-flow at today's rent, offer at most $104k (9.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $88k (23.4% below list).
• It's been on market 40 days — a 3% lower offer ($112k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $88k (23.4% below list) — sets the bar for 1% rule.
• In year one you build about $1k of equity ($795 loan paydown + $527 appreciation (0.5% local appreciation)).
• Location reads 56/100 on livability (#305 in MS) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+, crime A; Watch: health & safety D, amenities F, commute F.
• Smith County School District (rural): math 35% / reading 35% proficiency, ranked #55 of 130 in MS (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Raleigh Elementary School (math 23% / reading 39%, grade F, #185 of 375 statewide, top 49%, 587 students, 100% FRL) — zoned schools average 100% FRL vs 58% district-wide (42 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 17 active listings in the ZIP.
• Smith County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: severe flood risk; severe wind risk, 80% chance of damaging wind over 30y; moderate 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

• 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 40 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.