4 bd · 2.0 ba ·
2,237 sqft ·
Built 2025
· SingleFamily
· Pending
· 288 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$3,355/mo
Mortgage (P&I)
−$2,029
Tax + insurance
−$645
HOA
−$42
Vac / Maint / Mgmt
−$704
Net cashflow
$-66/mo
Annual
$-795/yr
Cap rate
6.09%
Cash-on-cash
-0.73%
DSCR
0.97
1% rule
0.87%
Cash to close
$108,360
Investor read
This is a 4-bed/2.0-bath single-family listed at $380k.
At list price, monthly cash flow is $-66 ($-795/yr) — negative.
To cash-flow at today's rent, offer at most $377k (0.7% below list).
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $335k (11.7% below list).
It's been on market 288 days — a 12% lower offer ($334k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $334k (12.0% below list) — sets the bar for market timing.
Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
Location reads 70/100 on livability (#44 in MS) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
Desoto County School District (suburban): math 48% / reading 42% proficiency, ranked #20 of 130 in MS (top 15%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Zoned schools: Hernando Elem (779 students, 100% FRL); Hernando Middle School (math 75% / reading 57%, grade A-, #2 of 179 statewide, top 1%, 1,150 students, 100% FRL); Hernando High School (math 69% / reading 62%, grade B, #2 of 197 statewide, top 1%, 1,419 students, 100% FRL) — zoned schools average 100% FRL vs 43% district-wide (56 pts higher); higher-poverty schools than district average — tighter screening recommended.
Zoned-school proficiency averages 66% at this address vs 45% district-wide (+21 pts) — the actual schools serving this property are materially stronger than the Desoto County School District average implies; a family-tenant draw the district grade alone would hide.
Market conditions: Rents soft (-0.4%/yr); 407 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 1,155 units permitted in DeSoto County in 2024 (0 in 5+ unit buildings).
DeSoto County population projected at +33% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
Cap rate 6.1% vs local median 4.3% in Hernando — 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.
This rent runs 43% of the median local income ($94k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.
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 288 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
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.
CashFlowRE · CFR-EWJSGC4HVM34Y6
· Data 4 weeks agocashflowre.app · 2026-05-29