412 E Hays St

Hollandale, MS 38748

$660,000B

42 bd · 28.0 ba · 2,188 sqft · Built 2008 · MultiFamily · Active · 107 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,049/mo
• Mortgage (P&I): −$3,461
• Tax + insurance: −$1,100
• HOA: −$0
• Vac / Maint / Mgmt: −$2,530
• Net cashflow: $4,958/mo
• Annual: $59,491/yr
• Cap rate: 15.31%
• Cash-on-cash: 32.19%
• DSCR: 2.43
• 1% rule: 1.83%
• Cash to close: $184,800

Investor read

• This is a 14 × 3-bed/2.0-bath units multifamily listed at $660k.
• At list price, monthly cash flow is $5k ($59k/yr) — positive. Per door: $354/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($12k rent vs $660k).
• It's been on market 107 days — a 9% lower offer ($601k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $601k (9.0% below list) — sets the bar for market timing.
• In year one you build about $8k of equity ($5k loan paydown + $4k appreciation (0.6% local appreciation)).
• Location reads 61/100 on livability (#202 in MS) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools F, amenities F, commute F.
• Hollandale School District (town): math 5% / reading 16% proficiency, ranked #116 of 130 in MS (top 89%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 96% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 12 active listings in the ZIP; 10 units permitted in Washington County in 2024 (0 in 5+ unit buildings).
• Washington County population projected at -36% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts 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.
• At projected returns (0.6% appreciation + 3.0% rent growth), your $185k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$42k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 53% chance of damaging wind over 30y; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 107 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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.