3500 Corban

Fayette, MS 39069

$35,000B

3 bd · 1.0 ba · 936 sqft · Built 1960 · SingleFamily · Pending · 187 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $872/mo
• Mortgage (P&I): −$184
• Tax + insurance: −$55
• HOA: −$0
• Vac / Maint / Mgmt: −$183
• Net cashflow: $450/mo
• Annual: $5,404/yr
• Cap rate: 21.73%
• Cash-on-cash: 55.15%
• DSCR: 3.45
• 1% rule: 2.49%
• Cash to close: $9,800

Investor read

• This is a 3-bed/1.0-bath single-family listed at $35k.
• At list price, monthly cash flow is $450 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($872 rent vs $35k).
• It's been on market 187 days — a 12% lower offer ($31k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $31k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.6%/yr); year-one equity from $242 of loan paydown is wiped out by about $550 of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#245 in MS) — a working-class tenant base; expect higher turnover. Strengths: crime A+, cost of living A+, housing A-; Watch: amenities F, commute F, employment F.
• Jefferson County School District (rural): math 7% / reading 13% proficiency, ranked #119 of 130 in MS (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 98% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Jefferson Co Elem School (math 2% / reading 8%, grade F, #356 of 375 statewide, top 98%, 424 students, 100% FRL); Jefferson Co Jr Hi (math 7% / reading 13%, grade F, #152 of 179 statewide, top 88%, 165 students, 100% FRL); Jefferson Co High (math 17% / reading 17%, grade F, #137 of 197 statewide, top 72%, 313 students, 100% FRL) — zoned schools at 100% FRL track the district average.
• Market conditions: 10 active listings in the ZIP.
• Jefferson County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-1.6% appreciation + 3.0% rent growth), your $10k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→19/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 187 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1960 — 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?
• 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.