400 Red Hill Cir

Batesville, MS 38606

$629,000B-

3 bd · 2.0 ba · 1,000 sqft · Built 2000 · MultiFamily · Active · 77 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $11,399/mo
• Mortgage (P&I): −$3,299
• Tax + insurance: −$1,048
• HOA: −$0
• Vac / Maint / Mgmt: −$2,394
• Net cashflow: $4,658/mo
• Annual: $55,900/yr
• Cap rate: 15.18%
• Cash-on-cash: 31.74%
• DSCR: 2.41
• 1% rule: 1.81%
• Cash to close: $176,120

Investor read

• This is a 3-bed/2.0-bath multifamily listed at $629k. Condition is rated poor.
• At list price, monthly cash flow is $5k ($56k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $629k).
• It's been on market 77 days — a 6% lower offer ($591k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $591k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#268 in MS) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: employment C-, schools D+, health & safety D+.
• South Panola School District (town): math 31% / reading 32% proficiency, ranked #65 of 130 in MS (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 72% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 121 active listings in the ZIP; 10 units permitted in Panola County in 2024 (0 in 5+ unit buildings).
• Panola County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $176k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: moderate wind risk, 26% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 15.2% vs local median 3.5% in Batesville — 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.

Questions for listing agent

• It's been on market 77 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — The roof appears to be in poor condition, with visible damage and potential leaks.
• Major: exterior siding — The exterior siding is in poor condition, with visible wear and tear.
• Major: flooring — The flooring is in poor condition, with visible wear and tear.
• Major: interior walls/paint — The interior walls and paint are in poor condition, with visible wear and tear.
• Major: HVAC/mechanicals — The HVAC and mechanical systems are in poor condition, with visible wear and tear.
• Major: landscaping — The landscaping is in poor condition, with overgrown vegetation and lack of maintenance.