895 Scr 131b

Polkville, MS 39117

$50,000B+

2 bd · 3.0 ba · 1,320 sqft · Built 1979 · SingleFamily · Active · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,088/mo
• Mortgage (P&I): −$262
• Tax + insurance: −$47
• HOA: −$0
• Vac / Maint / Mgmt: −$229
• Net cashflow: $551/mo
• Annual: $6,612/yr
• Cap rate: 19.52%
• Cash-on-cash: 47.23%
• DSCR: 3.10
• 1% rule: 2.18%
• Cash to close: $14,000

Investor read

• This is a 2-bed/3.0-bath single-family listed at $50k.
• At list price, monthly cash flow is $551 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $50k).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $3k of equity ($346 loan paydown + $3k appreciation (6.0% local appreciation)).
• Location reads 58/100 on livability (#269 in MS) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+, crime B+; Watch: amenities F, commute F, employment F.
• Smith County School District (rural): math 35% / reading 35% proficiency, ranked #55 of 130 in MS (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Raleigh Elementary School (math 23% / reading 39%, grade F, #185 of 375 statewide, top 49%, 587 students, 100% FRL); Raleigh High School (math 47% / reading 35%, grade F, #49 of 197 statewide, top 25%, 442 students, 99% FRL) — zoned schools average 99% FRL vs 58% district-wide (42 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 36 active listings in the ZIP.
• Smith County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (6.0% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 10, paydown + projected appreciation supports a ~$34k 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; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1979 — 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.