2408 Melody Ln NW

Kennesaw, GA 30152

$300,000C-

3 bd · 3.5 ba · 1,852 sqft · Built 1971 · SingleFamily · Active · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,582/mo
• Mortgage (P&I): −$1,573
• Tax + insurance: −$442
• HOA: −$0
• Vac / Maint / Mgmt: −$542
• Net cashflow: $25/mo
• Annual: $303/yr
• Cap rate: 6.62%
• Cash-on-cash: 1.15%
• DSCR: 1.05
• 1% rule: 0.86%
• Cash to close: $84,000

Investor read

• This is a 3-bed/3.5-bath single-family listed at $300k.
• At list price, monthly cash flow is $25 ($303/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $258k (13.9% below list).
• It's been on market 28 days — a 2% lower offer ($296k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $258k (13.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#19 in GA, #2,588 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, employment A-, crime B+; Watch: commute F.
• Cobb County (suburban): math 39% / reading 45% proficiency, ranked #25 of 174 in GA (top 14%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hayes Elementary School (math 34% / reading 34%, grade F, #554 of 1,228 statewide, top 46%, 841 students, 51% FRL); Pine Mountain Middle School (math 27% / reading 43%, grade F, #191 of 470 statewide, top 41%, 576 students, 46% FRL); Kennesaw Mountain High School (math 29% / reading 41%, grade F, #84 of 424 statewide, top 20%, 1,809 students, 30% FRL) — zoned schools at 42% FRL track the district average.
• Watch-outs: flood insurance adds $56/mo.
• Market conditions: Rents rising (+1.8%/yr); 293 active listings in the ZIP; 28 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 1,625 units permitted in Cobb County in 2024 (389 in 5+ unit buildings).
• Cobb County population projected at +33% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 15y 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 $25k; list at $300k implies a 1095% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major flood risk; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.6% vs local median 3.6% in Kennesaw — 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

• Built in 1971 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.