508 Rose Ave

New Hebron, MS 39140

$38,900B

3 bd · 1.0 ba · 1,193 sqft · Built 1952 · Other · Pending · 14 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,077/mo
• Mortgage (P&I): −$204
• Tax + insurance: −$67
• HOA: −$0
• Vac / Maint / Mgmt: −$226
• Net cashflow: $580/mo
• Annual: $6,961/yr
• Cap rate: 24.19%
• Cash-on-cash: 63.91%
• DSCR: 3.84
• 1% rule: 2.77%
• Cash to close: $10,892

Investor read

• This is a 3-bed/1.0-bath other listed at $39k.
• At list price, monthly cash flow is $580 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $39k).
• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $2k of equity ($269 loan paydown + $2k appreciation (4.2% local appreciation)).
• Location reads 59/100 on livability (#241 in MS) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: employment D, amenities F, commute F.
• Lawrence County School District (rural): math 20% / reading 26% proficiency, ranked #85 of 130 in MS (top 65%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: New Hebron Attendance Center (math 11% / reading 19%, grade F, #273 of 375 statewide, top 73%, 254 students, 99% FRL); Rod Paige Middle School (math 17% / reading 26%, grade F, #109 of 179 statewide, top 62%, 259 students, 99% FRL); Lawrence County High School (math 17% / reading 22%, grade F, #130 of 197 statewide, top 68%, 535 students, 99% FRL) — zoned schools average 99% FRL vs 67% district-wide (32 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1952 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 17 active listings in the ZIP.
• Lawrence County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $18k; list at $39k implies a 122% gain — meaningful room to come down on a strong offer.
• At projected returns (4.2% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 90% 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.

Questions for listing agent

• Built in 1952 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.