225 Town Center Dr

Oxford, MS 38655

$399,000D

3 bd · 1.0 ba · 629 sqft · Built 2013 · Townhouse · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,883/mo
• Mortgage (P&I): −$2,092
• Tax + insurance: −$258
• HOA: −$0
• Vac / Maint / Mgmt: −$605
• Net cashflow: $-73/mo
• Annual: $-877/yr
• Cap rate: 6.07%
• Cash-on-cash: -0.79%
• DSCR: 0.97
• 1% rule: 0.72%
• Cash to close: $111,720

Investor read

• This is a 3-bed/1.0-bath townhouse listed at $399k.
• At list price, monthly cash flow is $-73 ($-877/yr) — negative.
• To cash-flow at today's rent, offer at most $386k (3.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $288k (27.7% below list).
• It's been on market 21 days — a 2% lower offer ($393k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $288k (27.7% below list) — sets the bar for 1% rule.
• 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 87/100 on livability (#1 in MS, #285 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A+; Watch: employment C-.
• Oxford School District (town): math 53% / reading 49% proficiency, ranked #12 of 130 in MS (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Bramlett Elementary School (742 students, 100% FRL); Oxford Middle School (math 55% / reading 48%, grade C, #27 of 179 statewide, top 16%, 697 students, 100% FRL); Oxford High School (math 33% / reading 49%, grade F, #49 of 197 statewide, top 25%, 1,345 students, 100% FRL) — zoned schools average 100% FRL vs 42% district-wide (58 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+4.8%/yr); 857 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 503 units permitted in Lafayette County in 2024 (0 in 5+ unit buildings).
• Lafayette County population projected at +61% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 4y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Cap rate 6.1% vs local median 2.8% in Oxford — 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.
• At $2,883/mo this rent would consume 51% of the median local household income ($68k/yr) (locally 1892% of renters already pay >50% of income on rent) — 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?
• 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.
• 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.