1426 2nd St

Prentiss, MS 39474

$94,000B+

3 bd · 1.0 ba · 1,224 sqft · Built 1960 · SingleFamily · Active · 105 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,866/mo
• Mortgage (P&I): −$493
• Tax + insurance: −$134
• HOA: −$0
• Vac / Maint / Mgmt: −$602
• Net cashflow: $1,637/mo
• Annual: $19,639/yr
• Cap rate: 27.19%
• Cash-on-cash: 74.61%
• DSCR: 4.32
• 1% rule: 3.05%
• Cash to close: $26,320

Investor read

• This is a 3-bed/1.0-bath single-family listed at $94k.
• At list price, monthly cash flow is $2k ($20k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $94k).
• It's been on market 105 days — a 9% lower offer ($86k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $86k (9.0% below list) — sets the bar for market timing.
• In year one you build about $902 of equity ($650 loan paydown + $252 appreciation (0.3% local appreciation)).
• Location reads 61/100 on livability (#204 in MS) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+; Watch: housing C-, health & safety D, schools F.
• Jefferson Davis County School District (rural): math 14% / reading 20% proficiency, ranked #104 of 130 in MS (top 80%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 97% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 45 active listings in the ZIP.
• Jefferson Davis County population projected at -35% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 6y ago; this cycle's ask has dropped $156k (62%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (0.3% appreciation + 3.0% rent growth), your $26k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 105 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 F-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.