5720 Walnut Grove Church Rd

Hillsborough, NC 27541

$337,000D

2 bd · 2.0 ba · 1,296 sqft · Built 2013 · Manufactured · Active · 39 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,630/mo
• Mortgage (P&I): −$1,767
• Tax + insurance: −$333
• HOA: −$0
• Vac / Maint / Mgmt: −$552
• Net cashflow: $-23/mo
• Annual: $-278/yr
• Cap rate: 6.21%
• Cash-on-cash: -0.29%
• DSCR: 0.99
• 1% rule: 0.78%
• Cash to close: $94,360

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $337k.
• At list price, monthly cash flow is $-23 ($-278/yr) — negative.
• To cash-flow at today's rent, offer at most $333k (1.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $263k (22.0% below list).
• It's been on market 39 days — a 3% lower offer ($327k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $263k (22.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#14 in NC, #1,408 nationally) — a professional / high-income tenant draw. Strengths: commute A+, housing A+, health & safety A+; Watch: crime F.
• Orange County Schools (rural): math 35% / reading 44% proficiency, ranked #108 of 178 in NC (top 61%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hillsborough Elementary (math 58% / reading 68%, grade B, #168 of 1,410 statewide, top 12%, 425 students, 17% FRL); Orange Middle (math 38% / reading 49%, grade D, #182 of 475 statewide, top 40%, 525 students, 40% FRL); Orange High (math 63% / reading 58%, grade C+, #210 of 535 statewide, top 40%, 1,341 students, 41% FRL) — zoned schools at 33% FRL track the district average.
• Zoned-school proficiency averages 56% at this address vs 40% district-wide (+16 pts) — the actual schools serving this property are materially stronger than the Orange County Schools average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: 23 active listings in the ZIP; 375 units permitted in Orange County in 2024 (34 in 5+ unit buildings).
• Orange County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 3y 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.
• Cap rate 6.2% vs local median 2.7% in Hillsborough — 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?
• It's been on market 39 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.