507 Hennigan St

Merryville, LA 70653

$49,000B

3 bd · 2.0 ba · 1,515 sqft · Built 1950 · SingleFamily · Active · 339 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,150/mo
• Mortgage (P&I): −$257
• Tax + insurance: −$50
• HOA: −$0
• Vac / Maint / Mgmt: −$242
• Net cashflow: $602/mo
• Annual: $7,220/yr
• Cap rate: 21.03%
• Cash-on-cash: 52.62%
• DSCR: 3.34
• 1% rule: 2.35%
• Cash to close: $13,720

Investor read

• This is a 3-bed/2.0-bath single-family listed at $49k.
• At list price, monthly cash flow is $602 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $49k).
• It's been on market 339 days — a 12% lower offer ($43k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $43k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.0%/yr); year-one equity from $339 of loan paydown is wiped out by about $473 of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#196 in LA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A, crime B; Watch: amenities F, commute F, employment F.
• Beauregard Parish (rural): math 30% / reading 41% proficiency, ranked #32 of 98 in LA (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 29 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 83 units permitted in Beauregard Parish in 2024 (0 in 5+ unit buildings).
• Current owner paid $25k; list at $49k implies a 96% gain — meaningful room to come down on a strong offer.
• At projected returns (-1.0% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk; severe wind risk, 99% chance of damaging wind over 30y; moderate wildfire risk; 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

• It's been on market 339 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.