218 W Hill Ave #40

Valdosta, GA 31601

$2,550,000C+

None bd · None ba · 13,602 sqft · Built — · MultiFamily · Active · 114 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $31,142/mo
• Mortgage (P&I): −$13,372
• Tax + insurance: −$4,250
• HOA: −$0
• Vac / Maint / Mgmt: −$6,540
• Net cashflow: $6,980/mo
• Annual: $83,756/yr
• Cap rate: 9.58%
• Cash-on-cash: 11.73%
• DSCR: 1.52
• 1% rule: 1.22%
• Cash to close: $714,000

Investor read

• This is a multifamily listed at $2.55M. Condition is rated good.
• At list price, monthly cash flow is $7k ($84k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($31k rent vs $2.55M).
• It's been on market 114 days — a 9% lower offer ($2.32M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.32M (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $18k of loan paydown is wiped out by about $76k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#392 in GA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A-; Watch: schools F, crime F, amenities F.
• Valdosta City (urban): math 15% / reading 22% proficiency, ranked #149 of 174 in GA (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 74% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising fast (+8.3%/yr); 198 active listings in the ZIP; lower-income renter base — watch delinquency; 896 units permitted in Lowndes County in 2024 (0 in 5+ unit buildings).
• Lowndes County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $714k cash investment doubles in ~7 years — after that, you're playing with house money.
• Cap rate 9.6% vs local median 4.3% in Valdosta — 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.
• At $31,142/mo this rent would consume 1035% of the median local household income ($36k/yr) (locally 2016% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 114 days. Have you received any prior offers? Is the seller open to a 9% 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 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?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.