Stephen Elliott Homes The Savannah Plan

Douglasville, GA 30135

$273,990F

3 bd · 2.5 ba · 1,547 sqft · Built — · Townhouse · Active · 781 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,932/mo
• Mortgage (P&I): −$1,519
• Tax + insurance: −$483
• HOA: −$0
• Vac / Maint / Mgmt: −$406
• Net cashflow: $-476/mo
• Annual: $-5,710/yr
• Cap rate: 4.32%
• Cash-on-cash: -7.04%
• DSCR: 0.69
• 1% rule: 0.67%
• Cash to close: $81,110

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $274k. Condition is rated excellent.
• At list price, monthly cash flow is $-476 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $221k (19.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $193k (29.5% below list).
• It's been on market 781 days — a 12% lower offer ($241k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $193k (29.5% 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 $9k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#82 in GA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety B; Watch: crime F, amenities F.
• Douglas County (suburban): math 23% / reading 35% proficiency, ranked #92 of 174 in GA (top 53%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Factory Shoals Elementary School (math 17% / reading 27%, grade F, #810 of 1,228 statewide, top 69%, 605 students, 85% FRL); Factory Shoals Middle School (math 11% / reading 29%, grade F, #349 of 470 statewide, top 75%, 840 students, 67% FRL); New Manchester High School (math 10% / reading 28%, grade F, #250 of 424 statewide, top 60%, 1,894 students, 60% FRL) — zoned schools average 70% FRL vs 53% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents flat; 1062 active listings in the ZIP; 32 comparable units currently listed for rent nearby; rentals lingering (median 70d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 56% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 595 units permitted in Douglas County in 2024 (72 in 5+ unit buildings).
• Douglas County population projected at +35% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

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 781 days. Have you received any prior offers? Is the seller open to a 29% concession, seller financing, or rate buy-down credit?
• 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.
• 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.