50 & 52 Smith Rd

Asheville, NC 28748

$1,449,000D-

16 bd · 16.0 ba · 1,809 sqft · Built 2004 · MultiFamily · Active · 76 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $11,752/mo
• Mortgage (P&I): −$7,599
• Tax + insurance: −$2,415
• HOA: −$0
• Vac / Maint / Mgmt: −$2,468
• Net cashflow: $-730/mo
• Annual: $-8,756/yr
• Cap rate: 5.69%
• Cash-on-cash: -2.16%
• DSCR: 0.90
• 1% rule: 0.81%
• Cash to close: $405,720

Investor read

• This is a 8 × 2-bed/2.0-bath units multifamily listed at $1.45M.
• At list price, monthly cash flow is $-730 ($-9k/yr) — negative. Per door: $-91/mo.
• To cash-flow at today's rent, offer at most $1.34M (7.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.18M (18.9% below list).
• It's been on market 76 days — a 6% lower offer ($1.36M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.18M (18.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $10k of loan paydown is wiped out by about $43k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#96 in NC) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A+, housing A-; Watch: crime F.
• Buncombe County Schools (suburban): math 45% / reading 50% proficiency, ranked #72 of 178 in NC (top 40%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: West Buncombe Elementary (math 56% / reading 52%, grade C, #328 of 1,410 statewide, top 24%, 588 students, 66% FRL); Erwin Middle (math 37% / reading 37%, grade F, #262 of 475 statewide, top 57%, 568 students, 74% FRL); Erwin High (math 52% / reading 49%, grade D+, #306 of 535 statewide, top 57%, 1,096 students, 64% FRL) — zoned schools average 68% FRL vs 47% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 118 active listings in the ZIP; 3,305 units permitted in Buncombe County in 2024 (1,855 in 5+ unit buildings).
• Buncombe County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 2y 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.
• Current owner paid $600k; list at $1.45M implies a 142% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.7% vs local median 2.5% in Asheville — 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 76 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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 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?
• 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?