4002 Town Center Rd

Harrisburg, NC 28075

$210,000D

2 bd · 2.0 ba · 891 sqft · Built 2003 · Condo · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,898/mo
• Mortgage (P&I): −$1,101
• Tax + insurance: −$173
• HOA: −$283
• Vac / Maint / Mgmt: −$399
• Net cashflow: $-58/mo
• Annual: $-690/yr
• Cap rate: 5.96%
• Cash-on-cash: -1.17%
• DSCR: 0.95
• 1% rule: 0.90%
• Cash to close: $58,800

Investor read

• This is a 2-bed/2.0-bath condo listed at $210k.
• At list price, monthly cash flow is $-58 ($-690/yr) — negative.
• To cash-flow at today's rent, offer at most $200k (4.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $190k (9.6% below list).
• It's been on market 21 days — a 2% lower offer ($207k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $190k (9.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#23 in NC, #2,104 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A; Watch: cost of living C-, commute F.
• Cabarrus County Schools (rural): math 54% / reading 55% proficiency, ranked #44 of 178 in NC (top 25%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Pitts School Road Elementary (math 56% / reading 52%, grade C, #328 of 1,410 statewide, top 24%, 844 students, 48% FRL); Hickory Ridge Middle (math 73% / reading 68%, grade A, #17 of 475 statewide, top 4%, 935 students, 17% FRL); Hickory Ridge High (math 70% / reading 74%, grade B+, #107 of 535 statewide, top 21%, 1,720 students, 19% FRL).
• Market conditions: Rents rising fast (+9.0%/yr); 193 active listings in the ZIP; high-income renter base; 2,485 units permitted in Cabarrus County in 2024 (677 in 5+ unit buildings).
• Cabarrus County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $125k; list at $210k implies a 68% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wind risk, 22% 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 6.0% vs local median 3.1% in Harrisburg — 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.
• This rent is only 16% of the median local income ($144k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.