75 Kathleen Ter

Barbecue, NC 27332

$120,000B+

3 bd · 6.5 ba · 1,296 sqft · Built 1999 · Manufactured · Pending · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,823/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$115
• HOA: −$0
• Vac / Maint / Mgmt: −$383
• Net cashflow: $696/mo
• Annual: $8,349/yr
• Cap rate: 13.25%
• Cash-on-cash: 24.85%
• DSCR: 2.11
• 1% rule: 1.52%
• Cash to close: $33,600

Investor read

• This is a 3-bed/6.5-bath manufactured listed at $120k.
• At list price, monthly cash flow is $696 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $120k).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $830 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Harnett County Schools (rural): math 31% / reading 39% proficiency, ranked #130 of 178 in NC (top 73%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Highland Elementary (math 37% / reading 42%, grade F, #694 of 1,410 statewide, top 53%, 891 students, 53% FRL); Highland Middle (math 34% / reading 41%, grade F, #256 of 475 statewide, top 55%, 875 students, 64% FRL); Western Harnett High (math 57% / reading 58%, grade C, #245 of 535 statewide, top 46%, 1,386 students, 60% FRL).
• Market conditions: Rents rising fast (+4.9%/yr); 462 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 2,080 units permitted in Harnett County in 2024 (12 in 5+ unit buildings).
• Harnett County population projected at +42% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts 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 $100k; 20% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 4.9% rent growth), your $34k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 66% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 13.3% vs local median 4.3% in Barbecue — 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

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.