The Caldwell Plan

Sanford, NC 27332

$302,990F

3 bd · 2.5 ba · 2,231 sqft · Built — · SingleFamily · Active · 88 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,866/mo
• Mortgage (P&I): −$1,920
• Tax + insurance: −$610
• HOA: −$0
• Vac / Maint / Mgmt: −$392
• Net cashflow: $-1,056/mo
• Annual: $-12,674/yr
• Cap rate: 2.83%
• Cash-on-cash: -12.36%
• DSCR: 0.45
• 1% rule: 0.51%
• Cash to close: $102,515

Investor read

• This is a 3-bed/2.5-bath single-family listed at $303k. Condition is rated good.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative.
• To cash-flow at today's rent, offer at most $213k (29.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $187k (38.4% below list).
• It's been on market 88 days — a 6% lower offer ($285k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $187k (38.4% 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 72/100 on livability (#92 in NC) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, crime D-, commute F.
• Lee County Schools (rural): math 31% / reading 39% proficiency, ranked #131 of 178 in NC (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Tramway Elementary (math 45% / reading 47%, grade D-, #551 of 1,410 statewide, top 40%, 545 students, 47% FRL); Sanlee Middle School (math 32% / reading 43%, grade F, #256 of 475 statewide, top 55%, 809 students, 70% FRL); Southern Lee High School (math 43% / reading 46%, grade F, #352 of 535 statewide, top 68%, 1,234 students, 61% FRL) — zoned schools at 59% FRL track the district average.
• Market conditions: Rents rising fast (+4.9%/yr); 634 active listings in the ZIP; solid renter incomes; 602 units permitted in Lee County in 2024 (0 in 5+ unit buildings).
• Lee County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 2.8% vs local median 3.7% in Sanford — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 88 days. Have you received any prior offers? Is the seller open to a 38% 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?
• 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.