4131 Morton Ln

Franklinton, NC 27525

$137,000B+

3 bd · 2.0 ba · 1,960 sqft · Built 1989 · Manufactured · Active · 195 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,735/mo
• Mortgage (P&I): −$718
• Tax + insurance: −$122
• HOA: −$0
• Vac / Maint / Mgmt: −$364
• Net cashflow: $530/mo
• Annual: $6,359/yr
• Cap rate: 10.93%
• Cash-on-cash: 16.58%
• DSCR: 1.74
• 1% rule: 1.27%
• Cash to close: $38,360

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $137k.
• At list price, monthly cash flow is $530 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $137k).
• It's been on market 195 days — a 12% lower offer ($121k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $121k (12.0% below list) — sets the bar for market timing.
• In year one you build about $12k of equity ($947 loan paydown + $12k appreciation (8.4% local appreciation)).
• Location reads 61/100 on livability (#491 in NC) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D, amenities F, commute F.
• Granville County Schools (rural): math 28% / reading 36% proficiency, ranked #137 of 178 in NC (top 77%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: G. C. Hawley Middle (math 34% / reading 44%, grade F, #238 of 475 statewide, top 51%, 486 students, 59% FRL); South Granville High (math 52% / reading 52%, grade D+, #292 of 535 statewide, top 56%, 709 students, 48% FRL) — zoned schools at 53% FRL track the district average.
• Zoned-school proficiency averages 46% at this address vs 32% district-wide (+14 pts) — the actual schools serving this property are materially stronger than the Granville County Schools average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: 252 active listings in the ZIP; 428 units permitted in Granville County in 2024 (120 in 5+ unit buildings).
• At projected returns (8.4% appreciation + 3.0% rent growth), your $38k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 45% chance of damaging wind over 30y; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 10.9% vs local median 3.1% in Franklinton — 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

• It's been on market 195 days. Have you received any prior offers? Is the seller open to a 12% 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.
• 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 D 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?
• 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.