294 East 37th St

Cut Off, LA 70345

$92,000C+

3 bd · 2.0 ba · 1,170 sqft · Built 1970 · Other · Active · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,107/mo
• Mortgage (P&I): −$482
• Tax + insurance: −$530
• HOA: −$0
• Vac / Maint / Mgmt: −$233
• Net cashflow: $-138/mo
• Annual: $-1,651/yr
• Cap rate: 10.06%
• Cash-on-cash: 13.46%
• DSCR: 1.60
• 1% rule: 1.20%
• Cash to close: $25,760

Investor read

• This is a 3-bed/2.0-bath other listed at $92k.
• At list price, monthly cash flow is $-138 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $68k (26.4% below list).
• Meets the 1% rule at list price ($1k rent vs $92k).
• It's been on market 24 days — a 2% lower offer ($91k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $68k (26.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $636 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#78 in LA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment B+; Watch: crime C-, amenities F, commute F.
• Lafourche Parish (other): math 31% / reading 49% proficiency, ranked #22 of 98 in LA (top 22%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Cut Off Elementary School (math 32% / reading 52%, grade F, #201 of 646 statewide, top 33%, 426 students, 57% FRL); Larose-Cut Off Middle School (math 35% / reading 56%, grade D+, #45 of 218 statewide, top 20%, 481 students, 57% FRL); South Lafourche High School (math 33% / reading 59%, grade D-, #54 of 265 statewide, top 20%, 1,108 students, 61% FRL) — zoned schools at 58% FRL track the district average.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 100 active listings in the ZIP; 319 units permitted in Lafourche Parish in 2024 (0 in 5+ unit buildings).
• 4 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 10.1% vs local median 3.9% in Cut Off — 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

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.