340 E College Ave

Holly Springs, MS 38635

$219,000D

3 bd · 1.0 ba · 2,180 sqft · Built 1841 · SingleFamily · Pending · 391 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,600/mo
• Mortgage (P&I): −$1,148
• Tax + insurance: −$158
• HOA: −$0
• Vac / Maint / Mgmt: −$336
• Net cashflow: $-43/mo
• Annual: $-514/yr
• Cap rate: 6.06%
• Cash-on-cash: -0.84%
• DSCR: 0.96
• 1% rule: 0.73%
• Cash to close: $61,320

Investor read

• This is a 3-bed/1.0-bath single-family listed at $219k.
• At list price, monthly cash flow is $-43 ($-514/yr) — negative.
• To cash-flow at today's rent, offer at most $211k (3.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $160k (26.9% below list).
• It's been on market 391 days — a 12% lower offer ($193k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $160k (26.9% below list) — sets the bar for 1% rule.
• In year one you build about $1k of equity ($2k loan paydown + $-22 appreciation (-0.0% local appreciation)).
• Location reads 62/100 on livability (#178 in MS) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: schools F, amenities F, commute F.
• Holly Springs School District (town): math 12% / reading 15% proficiency, ranked #111 of 130 in MS (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 92% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1841 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 146 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 310 units permitted in Marshall County in 2024 (0 in 5+ unit buildings).
• Marshall County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts; this cycle's ask has dropped $61k (22%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: 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 391 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
• Built in 1841 — 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 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?
• 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.