511 Main St

Pope, MS 38658

$254,000D

4 bd · 2.0 ba · 1,953 sqft · Built 1960 · SingleFamily · Pending · 130 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,441/mo
• Mortgage (P&I): −$1,332
• Tax + insurance: −$423
• HOA: −$0
• Vac / Maint / Mgmt: −$303
• Net cashflow: $-617/mo
• Annual: $-7,407/yr
• Cap rate: 3.38%
• Cash-on-cash: -10.41%
• DSCR: 0.54
• 1% rule: 0.57%
• Cash to close: $71,120

Investor read

• This is a 4-bed/2.0-bath single-family listed at $254k.
• At list price, monthly cash flow is $-617 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $165k (35.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $144k (43.3% below list).
• It's been on market 130 days — a 12% lower offer ($224k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $144k (43.3% below list) — sets the bar for 1% rule.
• In year one you build about $26k of equity ($2k loan paydown + $25k appreciation (9.7% local appreciation)).
• Location reads 59/100 on livability (#257 in MS) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+, crime A; Watch: schools D+, health & safety D+, amenities F.
• South Panola School District (town): math 31% / reading 32% proficiency, ranked #65 of 130 in MS (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 72% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 18 active listings in the ZIP; 10 units permitted in Panola County in 2024 (0 in 5+ unit buildings).
• Panola County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts; this cycle's ask has dropped $35k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$42k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wind risk, 26% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→21/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 130 days. Have you received any prior offers? Is the seller open to a 43% 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 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?
• 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.