6640 Montclair Ave

Southaven, MS 38672

$398,900D-

3 bd · 3.0 ba · 2,126 sqft · Built 2025 · SingleFamily · Active · 554 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,081/mo
• Mortgage (P&I): −$2,092
• Tax + insurance: −$665
• HOA: −$33
• Vac / Maint / Mgmt: −$647
• Net cashflow: $-356/mo
• Annual: $-4,267/yr
• Cap rate: 5.22%
• Cash-on-cash: -3.82%
• DSCR: 0.83
• 1% rule: 0.77%
• Cash to close: $111,692

Investor read

• This is a 3-bed/3.0-bath single-family listed at $399k. Condition is rated excellent.
• At list price, monthly cash flow is $-356 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $347k (12.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $308k (22.8% below list).
• It's been on market 554 days — a 12% lower offer ($351k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $308k (22.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#107 in MS) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Desoto County School District (suburban): math 48% / reading 42% proficiency, ranked #20 of 130 in MS (top 15%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Desoto Central Primary (876 students, 100% FRL); Desoto Central Middle School (math 62% / reading 48%, grade B-, #15 of 179 statewide, top 8%, 1,468 students, 100% FRL); Desoto Central High School (math 36% / reading 52%, grade F, #40 of 197 statewide, top 20%, 1,995 students, 100% FRL) — zoned schools average 100% FRL vs 43% district-wide (56 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 208 active listings in the ZIP; 18 comparable units currently listed for rent nearby; rentals lingering (median 54d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 78% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 1,155 units permitted in DeSoto County in 2024 (0 in 5+ unit buildings).
• DeSoto County population projected at +33% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 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.
• This rent runs 32% of the median local income ($116k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 554 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• 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 D-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.