205 Adams St

Banks Springs, LA 71418

$125,000C

3 bd · 2.0 ba · 1,740 sqft · Built 1981 · SingleFamily · Pending · 14 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,135/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$140
• HOA: −$0
• Vac / Maint / Mgmt: −$238
• Net cashflow: $101/mo
• Annual: $1,211/yr
• Cap rate: 7.26%
• Cash-on-cash: 3.46%
• DSCR: 1.15
• 1% rule: 0.91%
• Cash to close: $35,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $125k.
• At list price, monthly cash flow is $101 ($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 $113k (9.2% below list).
• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $113k (9.2% below list) — sets the bar for 1% rule.
• In year one you build about $6k of equity ($864 loan paydown + $5k appreciation (4.2% local appreciation)).
• Location reads 53/100 on livability (#388 in LA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A; Watch: employment D, health & safety D, amenities F.
• Caldwell Parish (rural): math 17% / reading 34% proficiency, ranked #59 of 98 in LA (top 60%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Caldwell Parish Junior High School (math 12% / reading 32%, grade F, #153 of 218 statewide, top 72%, 362 students, 67% FRL); Caldwell Parish High School (math 12% / reading 37%, grade F, #153 of 265 statewide, top 62%, 441 students, 59% FRL) — zoned schools at 63% FRL track the district average.
• Market conditions: 24 active listings in the ZIP; 9 units permitted in Caldwell Parish in 2024 (0 in 5+ unit buildings).
• Caldwell County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (4.2% appreciation + 3.0% rent growth), your $35k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→17/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.