206 Roy St

Springhill, LA 71075

$84,000F

2 bd · 1.0 ba · 1,095 sqft · Built 1975 · SingleFamily · Active · 29 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $600/mo
• Mortgage (P&I): −$441
• Tax + insurance: −$61
• HOA: −$0
• Vac / Maint / Mgmt: −$126
• Net cashflow: $-28/mo
• Annual: $-332/yr
• Cap rate: 5.90%
• Cash-on-cash: -1.41%
• DSCR: 0.94
• 1% rule: 0.71%
• Cash to close: $23,520

Investor read

• This is a 2-bed/1.0-bath single-family listed at $84k.
• At list price, monthly cash flow is $-28 ($-332/yr) — negative.
• To cash-flow at today's rent, offer at most $79k (5.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $60k (28.6% below list).
• It's been on market 29 days — a 2% lower offer ($83k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $60k (28.6% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($581 loan paydown + $3k appreciation (3.6% local appreciation)).
• Location reads 65/100 on livability (#139 in LA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A-, health & safety A-; Watch: amenities F, commute F, employment F.
• Webster Parish (town): math 17% / reading 26% proficiency, ranked #67 of 98 in LA (top 68%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 44 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 36 units permitted in Webster Parish in 2024 (0 in 5+ unit buildings).
• Webster County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (3.6% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 52% chance of damaging wind over 30y; extreme-heat days projected 7→23/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?
• Built in 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.