135 Sheldon Way

Fayetteville, GA 30215

$365,000D-

3 bd · 3.0 ba · 1,621 sqft · Built 1995 · SingleFamily · Under Contract · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,636/mo
• Mortgage (P&I): −$1,914
• Tax + insurance: −$235
• HOA: −$0
• Vac / Maint / Mgmt: −$554
• Net cashflow: $-67/mo
• Annual: $-804/yr
• Cap rate: 6.07%
• Cash-on-cash: -0.79%
• DSCR: 0.97
• 1% rule: 0.72%
• Cash to close: $102,200

Investor read

• This is a 3-bed/3.0-bath single-family listed at $365k.
• At list price, monthly cash flow is $-67 ($-804/yr) — negative.
• To cash-flow at today's rent, offer at most $353k (3.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $264k (27.8% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $264k (27.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#86 in GA) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety B+, employment B; Watch: amenities F, commute F.
• Fayette County (suburban): math 52% / reading 60% proficiency, ranked #7 of 174 in GA (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Inman Elementary (math 56% / reading 56%, grade C+, #165 of 1,228 statewide, top 14%, 663 students, 32% FRL); Whitewater Middle School (math 55% / reading 65%, grade B, #41 of 470 statewide, top 9%, 864 students, 20% FRL); Whitewater High School (math 32% / reading 62%, grade D-, #37 of 424 statewide, top 9%, 1,387 students, 18% FRL) — zoned schools at 23% FRL track the district average.
• Market conditions: Rents rising (+3.2%/yr); 310 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals leasing fast (median 11d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 323 units permitted in Fayette County in 2024 (0 in 5+ unit buildings).
• Fayette County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 13y 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 $220k; list at $365k implies a 66% gain — meaningful room to come down on a strong offer.
• 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 4.4% in Fayetteville — 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?
• 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?
• 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.