816 - 818 Drayton St

Savannah, GA 31401

$4,225,000C+

308 bd · 196.0 ba · — sqft · Built 1896 · MultiFamily · Under Contract · 210 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $51,573/mo
• Mortgage (P&I): −$22,156
• Tax + insurance: −$7,042
• HOA: −$0
• Vac / Maint / Mgmt: −$10,830
• Net cashflow: $11,545/mo
• Annual: $138,536/yr
• Cap rate: 9.57%
• Cash-on-cash: 11.71%
• DSCR: 1.52
• 1% rule: 1.22%
• Cash to close: $1,183,000

Investor read

• This is a 14 × 22-bed/14.0-bath units multifamily listed at $4.22M.
• At list price, monthly cash flow is $12k ($139k/yr) — positive. Per door: $825/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($52k rent vs $4.22M).
• It's been on market 210 days — a 12% lower offer ($3.72M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.72M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $29k of loan paydown is wiped out by about $127k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#1 in GA, #397 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, commute A+; Watch: employment D.
• Savannah-Chatham County (urban): math 20% / reading 26% proficiency, ranked #134 of 174 in GA (top 77%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Hubert Middle School (math 8% / reading 12%, grade F, #433 of 470 statewide, top 93%, 460 students, 95% FRL); Savannah Arts Academy (math 44% / reading 77%, grade C+, #12 of 424 statewide, top 3%, 905 students, 17% FRL) — zoned schools at 56% FRL track the district average.
• Zoned-school proficiency averages 35% at this address vs 23% district-wide (+12 pts) — the actual schools serving this property are materially stronger than the Savannah-Chatham County average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1896 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.0%/yr); 333 active listings in the ZIP; 2,694 units permitted in Chatham County in 2024 (973 in 5+ unit buildings).
• Chatham County population projected at +33% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 15y ago; this cycle's ask has dropped $500k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $1.18M cash investment doubles in ~10 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 99% 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 9.6% vs local median 4.0% in Savannah — 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

• It's been on market 210 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1896 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.