None bd · None ba ·
5,600 sqft ·
Built —
· MultiFamily
· Pending
· 190 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$7,543/mo
Mortgage (P&I)
−$3,120
Tax + insurance
−$992
HOA
−$0
Vac / Maint / Mgmt
−$1,584
Net cashflow
$1,847/mo
Annual
$22,165/yr
Cap rate
10.02%
Cash-on-cash
13.30%
DSCR
1.59
1% rule
1.27%
Cash to close
$166,600
Investor read
This is a 7 × 2-bed/?-bath units multifamily listed at $595k.
At list price, monthly cash flow is $2k ($22k/yr) — positive. Per door: $264/mo.
The deal already cash-flows at list — no discount required.
Meets the 1% rule at list price ($8k rent vs $595k).
It's been on market 190 days — a 12% lower offer ($524k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $524k (12.0% below list) — sets the bar for market timing.
Local home prices are declining (-0.9%/yr); year-one equity from $4k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
Location reads 74/100 on livability (#24 in LA, #4,535 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, health & safety A+; Watch: amenities D, crime F, employment D-.
East Baton Rouge Parish (urban): math 22% / reading 34% proficiency, ranked #47 of 98 in LA (top 48%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 77% free/reduced lunch — lower-income household profile, screen leases tightly.
Market conditions: 101 active listings in the ZIP; lower-income renter base — watch delinquency; 2,252 units permitted in East Baton Rouge Parish in 2024 (440 in 5+ unit buildings).
East Baton Rouge County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
4 sale attempts since 4y ago; this cycle's ask has dropped $55k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
At projected returns (-0.9% appreciation + 3.0% rent growth), your $167k cash investment doubles in ~7 years — after that, you're playing with house money.
Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
Cap rate 10.0% vs local median 4.3% in Baton Rouge — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
At $7,543/mo this rent would consume 329% of the median local household income ($28k/yr) (locally 1092% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.
Questions for listing agent
It's been on market 190 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
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.
Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
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.
CashFlowRE · CFR-V60D6JCAW6DP87
· Data 3 weeks agocashflowre.app · 2026-05-29