The Grove Plan

Shreveport, LA 71119

$49,999F

2 bd · 2.0 ba · 1,056 sqft · Built — · SingleFamily · Active · 432 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $900/mo
• Mortgage (P&I): −$670
• Tax + insurance: −$639
• HOA: −$0
• Vac / Maint / Mgmt: −$189
• Net cashflow: $-598/mo
• Annual: $-7,175/yr
• Cap rate: 4.68%
• Cash-on-cash: -5.75%
• DSCR: 0.74
• 1% rule: 0.70%
• Cash to close: $35,751

Investor read

• This is a 2-bed/2.0-bath single-family listed at $50k. Condition is rated excellent.
• At list price, monthly cash flow is $-598 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $41k (17.7% below list).
• Meets the 1% rule at list price ($900 rent vs $50k).
• It's been on market 432 days — a 12% lower offer ($44k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $41k (17.7% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $882 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#270 in LA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A; Watch: crime F, amenities F, commute F.
• Caddo Parish (urban): math 21% / reading 32% proficiency, ranked #53 of 98 in LA (top 54%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 64% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Turner Elementary Middle School (math 8% / reading 16%, grade F, #568 of 646 statewide, top 89%, 1,371 students, 81% FRL); Caddo Parish Middle Magnet School (math 79% / reading 93%, grade A+, #1 of 218 statewide, top 0%, 1,003 students, 23% FRL); Huntington High School (math 6% / reading 34%, grade F, #183 of 265 statewide, top 70%, 1,228 students, 72% FRL).
• Zoned-school proficiency averages 39% at this address vs 26% district-wide (+13 pts) — the actual schools serving this property are materially stronger than the Caddo Parish average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: property tax is 3.8% of price; flood insurance adds $427/mo.
• Market conditions: 193 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 221 units permitted in Caddo Parish in 2024 (0 in 5+ unit buildings).
• Caddo County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); major wind risk, 65% chance of damaging wind over 30y; extreme-heat days projected 7→22/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 432 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?