1510 Enota Ave

Gainesville, GA 30501

$1,400,000D

3 bd · 2.0 ba · 1,974 sqft · Built 1900 · MultiFamily · Active · 107 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $62,062/mo
• Mortgage (P&I): −$7,342
• Tax + insurance: −$2,333
• HOA: −$0
• Vac / Maint / Mgmt: −$13,033
• Net cashflow: $39,354/mo
• Annual: $472,247/yr
• Cap rate: 40.02%
• Cash-on-cash: 120.47%
• DSCR: 6.36
• 1% rule: 4.43%
• Cash to close: $392,000

Investor read

• This is a 3-bed/2.0-bath multifamily listed at $1.40M.
• At list price, monthly cash flow is $39k ($472k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($62k rent vs $1.40M).
• It's been on market 107 days — a 9% lower offer ($1.27M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.27M (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $10k of loan paydown is wiped out by about $42k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#181 in GA) — a middle-class / working-renter tenant base. Strengths: housing A+, cost of living A-; Watch: amenities D+, schools F, crime F.
• Gainesville City (urban): math 23% / reading 25% proficiency, ranked #130 of 174 in GA (top 75%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 71% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.5%/yr); 251 active listings in the ZIP; 12 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); 42% of comp listings sitting > 30 days — soft ceiling on asking rent; 2,274 units permitted in Hall County in 2024 (620 in 5+ unit buildings).
• Hall County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 5y ago 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.
• At projected returns (-3.0% appreciation + 4.5% rent growth), your $392k cash investment doubles in ~1 year — after that, you're playing with house money.
• Cap rate 40.0% vs local median 2.7% in Gainesville — 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.
• At $62,062/mo this rent would consume 1160% of the median local household income ($64k/yr) (locally 2055% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 107 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1900 — 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.
• 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?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.