220 Calhoun Ave

Yazoo City, MS 39194

$79,900B

4 bd · 1.0 ba · 2,345 sqft · Built 1935 · Other · Active · 218 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,135/mo
• Mortgage (P&I): −$419
• Tax + insurance: −$225
• HOA: −$0
• Vac / Maint / Mgmt: −$238
• Net cashflow: $252/mo
• Annual: $3,023/yr
• Cap rate: 10.08%
• Cash-on-cash: 13.51%
• DSCR: 1.60
• 1% rule: 1.42%
• Cash to close: $22,372

Investor read

• This is a 4-bed/1.0-bath other listed at $80k.
• At list price, monthly cash flow is $252 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $80k).
• It's been on market 218 days — a 12% lower offer ($70k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $70k (12.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($552 loan paydown + $3k appreciation (4.2% local appreciation)).
• Location reads 53/100 on livability (#328 in MS) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A-; Watch: amenities F, commute F, employment F.
• Yazoo City Municipal School District (town): math 2% / reading 6% proficiency, ranked #130 of 130 in MS (top 100%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 94% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Mccoy Elementary School (math 0% / reading 5%, grade F, #372 of 375 statewide, top 99%, 612 students, 100% FRL); Bettie E Woolfolk Middle School (math 3% / reading 6%, grade F, #177 of 179 statewide, top 99%, 493 students, 100% FRL); Yazoo City High School (math 0% / reading 8%, grade F, #196 of 197 statewide, top 99%, 632 students, 100% FRL).
• Watch-outs: property tax is 2.9% of price; built in 1935 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 53 active listings in the ZIP; 12 units permitted in Yazoo County in 2024 (0 in 5+ unit buildings).
• Yazoo County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $10k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (4.2% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 61% 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.
• Cap rate 10.1% vs local median 4.2% in Yazoo City — 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.

Questions for listing agent

• It's been on market 218 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1935 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.