The Manchester II Plan

Indian Springs, GA 30736

$254,900F

3 bd · 2.5 ba · 1,743 sqft · Built — · SingleFamily · Active · 275 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,977/mo
• Mortgage (P&I): −$1,587
• Tax + insurance: −$504
• HOA: −$0
• Vac / Maint / Mgmt: −$415
• Net cashflow: $-530/mo
• Annual: $-6,357/yr
• Cap rate: 4.19%
• Cash-on-cash: -7.50%
• DSCR: 0.67
• 1% rule: 0.65%
• Cash to close: $84,749

Investor read

• This is a 3-bed/2.5-bath single-family listed at $255k.
• At list price, monthly cash flow is $-530 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $226k (11.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $198k (22.4% below list).
• It's been on market 275 days — a 12% lower offer ($224k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $198k (22.4% 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 63/100 on livability (#283 in GA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Catoosa County (suburban): math 36% / reading 41% proficiency, ranked #49 of 174 in GA (top 28%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Graysville Elementary School (math 50% / reading 42%, grade D-, #316 of 1,228 statewide, top 26%, 591 students, 34% FRL); Ringgold Middle School (math 35% / reading 49%, grade D-, #126 of 470 statewide, top 28%, 765 students, 42% FRL); Ringgold High School (math 32% / reading 17%, grade F, #184 of 424 statewide, top 48%, 1,053 students, 34% FRL) — zoned schools at 37% FRL track the district average.
• Market conditions: Rents rising fast (+6.8%/yr); 362 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 848 units permitted in Catoosa County in 2024 (256 in 5+ unit buildings).
• Catoosa County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

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?
• It's been on market 275 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
• 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?
• 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.