126 CR 771

Verona, MS 38868

$1C-

2 bd · 1.0 ba · 1,160 sqft · Built 1998 · SingleFamily · Pending · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,049/mo
• Mortgage (P&I): −$0
• Tax + insurance: −$0
• HOA: −$0
• Vac / Maint / Mgmt: −$220
• Net cashflow: $829/mo
• Annual: $9,949/yr
• Cap rate: 994886.08%
• Cash-on-cash: 3553142.10%
• DSCR: 158095.83
• 1% rule: 104946.00%
• Cash to close: $0

Investor read

• This is a 2-bed/1.0-bath single-family listed at $1.
• At list price, monthly cash flow is $829 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $1).
• It's been on market 15 days — a 2% lower offer ($0) is reasonable based on typical stale-listing flexibility.
• Location reads 61/100 on livability (#198 in MS) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Lee County School District (rural): math 37% / reading 35% proficiency, ranked #51 of 130 in MS (top 39%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Shannon Primary School (233 students, 100% FRL); Shannon Middle School (math 26% / reading 23%, grade F, #100 of 179 statewide, top 57%, 202 students, 100% FRL); Shannon High School (math 17% / reading 17%, grade F, #137 of 197 statewide, top 72%, 525 students, 100% FRL) — zoned schools average 100% FRL vs 54% district-wide (46 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 21% at this address vs 36% district-wide (-15 pts) — the specific schools serving this property underperform the Lee County School District average; the district grade overstates school quality for this exact location.
• Market conditions: 18 active listings in the ZIP; 154 units permitted in Lee County in 2024 (24 in 5+ unit buildings).
• Lee County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (6.6% appreciation + 3.0% rent growth), your $0 cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• 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.