226 Zellner Rd

Yatesville, GA 31016

$239,000D-

3 bd · 2.0 ba · 1,512 sqft · Built 2001 · Manufactured · Under Contract · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,227/mo
• Mortgage (P&I): −$1,253
• Tax + insurance: −$153
• HOA: −$0
• Vac / Maint / Mgmt: −$258
• Net cashflow: $-437/mo
• Annual: $-5,246/yr
• Cap rate: 4.10%
• Cash-on-cash: -7.84%
• DSCR: 0.65
• 1% rule: 0.51%
• Cash to close: $66,920

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $239k.
• At list price, monthly cash flow is $-437 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $162k (32.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $123k (48.7% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $123k (48.7% below list) — sets the bar for 1% rule.
• In year one you build about $12k of equity ($2k loan paydown + $11k appreciation (4.5% local appreciation)).
• Location reads 61/100 on livability (#353 in GA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, crime D, amenities F.
• Lamar County (town): math 21% / reading 27% proficiency, ranked #132 of 174 in GA (top 76%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Lamar County Primary School (802 students, 75% FRL); Lamar County Middle School (math 20% / reading 33%, grade F, #282 of 470 statewide, top 61%, 657 students, 58% FRL); Lamar County High School (math 17% / reading 22%, grade F, #243 of 424 statewide, top 59%, 808 students, 48% FRL) — zoned schools at 60% FRL track the district average.
• Market conditions: 13 active listings in the ZIP; 129 units permitted in Lamar County in 2024 (0 in 5+ unit buildings).
• Lamar County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 5 sale attempts since 5y 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 $50k; list at $239k implies a 378% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 68% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 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.
• 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.