2032 Piccolo Ct #226

McDonough, GA 30252

$299,850D-

3 bd · 2.5 ba · 1,790 sqft · Built 2025 · Townhouse · Under Contract · 90 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,553/mo
• Mortgage (P&I): −$1,572
• Tax + insurance: −$500
• HOA: −$0
• Vac / Maint / Mgmt: −$536
• Net cashflow: $-55/mo
• Annual: $-662/yr
• Cap rate: 6.07%
• Cash-on-cash: -0.79%
• DSCR: 0.96
• 1% rule: 0.85%
• Cash to close: $83,958

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $300k.
• At list price, monthly cash flow is $-55 ($-662/yr) — negative.
• To cash-flow at today's rent, offer at most $292k (2.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $255k (14.8% below list).
• It's been on market 90 days — a 6% lower offer ($282k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $255k (14.8% 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 63/100 on livability (#279 in GA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment B; Watch: crime D, amenities F, commute F.
• Henry County (rural): math 24% / reading 33% proficiency, ranked #89 of 174 in GA (top 51%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Timber Ridge Elementary School (math 44% / reading 46%, grade D-, #327 of 1,228 statewide, top 27%, 761 students, 32% FRL); Union Grove Middle (math 44% / reading 52%, grade C-, #80 of 470 statewide, top 17%, 1,069 students, 32% FRL); Union Grove High (math 22% / reading 37%, grade F, #140 of 424 statewide, top 35%, 1,648 students, 24% FRL).
• Zoned-school proficiency averages 41% at this address vs 28% district-wide (+12 pts) — the actual schools serving this property are materially stronger than the Henry County average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents rising (+1.5%/yr); 586 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 27d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,989 units permitted in Henry County in 2024 (92 in 5+ unit buildings).
• Henry County population projected at +29% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts; this cycle's ask has dropped $25k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.1% vs local median 3.9% in McDonough — 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.
• This rent runs 30% of the median local income ($101k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 90 days. Have you received any prior offers? Is the seller open to a 15% 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 D-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?
• 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.