414 Iowa Ave

Lake Arthur, LA 70549

$62,900A-

2 bd · 2.0 ba · 1,574 sqft · Built 1910 · SingleFamily · Pending · 266 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $946/mo
• Mortgage (P&I): −$330
• Tax + insurance: −$135
• HOA: −$0
• Vac / Maint / Mgmt: −$199
• Net cashflow: $283/mo
• Annual: $3,391/yr
• Cap rate: 12.95%
• Cash-on-cash: 23.78%
• DSCR: 2.06
• 1% rule: 1.50%
• Cash to close: $17,612

Investor read

• This is a 2-bed/2.0-bath single-family listed at $63k.
• At list price, monthly cash flow is $283 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($946 rent vs $63k).
• It's been on market 266 days — a 12% lower offer ($55k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $55k (12.0% below list) — sets the bar for market timing.
• In year one you build about $176 of equity ($435 loan paydown + $-259 appreciation (-0.4% local appreciation)).
• Location reads 68/100 on livability (#99 in LA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Jefferson Davis Parish (town): math 30% / reading 42% proficiency, ranked #33 of 98 in LA (top 34%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: flood insurance adds $66/mo; built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 10 active listings in the ZIP; 69 units permitted in Jefferson Davis Parish in 2024 (0 in 5+ unit buildings).
• Jefferson Davis County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts; this cycle's ask has dropped $22k (26%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-0.4% appreciation + 3.0% rent growth), your $18k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk; severe wind risk, 99% chance of damaging wind over 30y; 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

• It's been on market 266 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1910 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• 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.