202 Martin Luther King Jr St

Banks Springs, LA 71418

$69,500B

3 bd · 1.5 ba · 1,100 sqft · Built 1972 · SingleFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $959/mo
• Mortgage (P&I): −$364
• Tax + insurance: −$65
• HOA: −$0
• Vac / Maint / Mgmt: −$201
• Net cashflow: $328/mo
• Annual: $3,934/yr
• Cap rate: 11.95%
• Cash-on-cash: 20.22%
• DSCR: 1.90
• 1% rule: 1.38%
• Cash to close: $19,460

Investor read

• This is a 3-bed/1.5-bath single-family listed at $70k.
• At list price, monthly cash flow is $328 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($959 rent vs $70k).
• It's been on market 20 days — a 2% lower offer ($68k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $68k (1.5% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($481 loan paydown + $3k appreciation (4.2% local appreciation)).
• Location reads 53/100 on livability (#388 in LA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A; Watch: employment D, health & safety D, schools F.
• Caldwell Parish (rural): math 17% / reading 34% proficiency, ranked #59 of 98 in LA (top 60%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 23 active listings in the ZIP; 9 units permitted in Caldwell Parish in 2024 (0 in 5+ unit buildings).
• Caldwell County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (4.2% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 10, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; moderate wildfire risk; 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

• Built in 1972 — 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.
• 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.