25 Central Ave

Ecru, MS 38841

$99,900C

3 bd · 1.0 ba · 1,124 sqft · Built 1997 · Other · Pending · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $977/mo
• Mortgage (P&I): −$524
• Tax + insurance: −$169
• HOA: −$0
• Vac / Maint / Mgmt: −$205
• Net cashflow: $79/mo
• Annual: $952/yr
• Cap rate: 7.25%
• Cash-on-cash: 3.40%
• DSCR: 1.15
• 1% rule: 0.98%
• Cash to close: $27,972

Investor read

• This is a 3-bed/1.0-bath other listed at $100k.
• At list price, monthly cash flow is $79 ($952/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $98k (2.2% below list).
• It's been on market 26 days — a 2% lower offer ($98k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $98k (2.2% below list) — sets the bar for 1% rule.
• In year one you build about $9k of equity ($691 loan paydown + $9k appreciation (8.6% local appreciation)).
• Location reads 68/100 on livability (#64 in MS) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing B+; Watch: amenities F, commute F, employment D-.
• Pontotoc County School District (rural): math 48% / reading 40% proficiency, ranked #31 of 130 in MS (top 24%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: North Pontotoc Elementary School (math 49% / reading 44%, grade D-, #87 of 375 statewide, top 23%, 743 students, 100% FRL); North Pontotoc Upper Elementary (math 56% / reading 36%, grade D+, #39 of 179 statewide, top 22%, 285 students, 99% FRL); North Pontotoc High School (math 27% / reading 37%, grade F, #80 of 197 statewide, top 42%, 513 students, 99% FRL) — zoned schools average 99% FRL vs 55% district-wide (44 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 13 active listings in the ZIP; 86 units permitted in Pontotoc County in 2024 (60 in 5+ unit buildings).
• Pontotoc County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (8.6% appreciation + 3.0% rent growth), your $28k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% 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

• 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?
• 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.