5017 S Prien Lake Rd S #3

Lake Charles, LA 70605

$178,000D

2 bd · 1.5 ba · 1,256 sqft · Built 2014 · Townhouse · Pending · 99 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,732/mo
• Mortgage (P&I): −$933
• Tax + insurance: −$297
• HOA: −$15
• Vac / Maint / Mgmt: −$364
• Net cashflow: $123/mo
• Annual: $1,482/yr
• Cap rate: 7.13%
• Cash-on-cash: 2.97%
• DSCR: 1.13
• 1% rule: 0.97%
• Cash to close: $49,840

Investor read

• This is a 2-bed/1.5-bath townhouse listed at $178k. Condition is rated fair.
• At list price, monthly cash flow is $123 ($1k/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 $173k (2.7% below list).
• It's been on market 99 days — a 9% lower offer ($162k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $162k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#95 in LA) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: crime F, amenities F, employment D-.
• Calcasieu Parish (other): math 30% / reading 44% proficiency, ranked #29 of 98 in LA (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: St. John Elementary School (math 35% / reading 53%, grade F, #191 of 646 statewide, top 30%, 654 students, 64% FRL); S. J. Welsh Middle School (math 28% / reading 44%, grade F, #84 of 218 statewide, top 41%, 1,107 students, 49% FRL); Alfred M. Barbe High School (math 41% / reading 56%, grade D, #41 of 265 statewide, top 16%, 1,991 students, 41% FRL) — zoned schools at 51% FRL track the district average.
• Market conditions: Rents rising fast (+15.1%/yr); 464 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,298 units permitted in Calcasieu Parish in 2024 (526 in 5+ unit buildings).
• Calcasieu County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 7y ago; this cycle's ask has dropped $10k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $50k cash investment doubles in ~10 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.1% vs local median 4.2% in Lake Charles — 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 99 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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?

Repairs flagged (vision-AI assessment)

• Major: Landscaping — The overgrown landscaping significantly detracts from the property's curb appeal.
• Moderate: Exterior Painting — The siding appears weathered and in need of repainting.
• Major: Landscaping Maintenance — The landscaping is overgrown and requires trimming and maintenance to improve curb appeal.