5838 Highway 42 · Morrow, GA 30294

$150,000

3 bd · 1.0 ba · 1,075 sqft · SingleFamily public records · 24 Days on market

Built 1960 0.34 ac lot $140/sqft · 36% below area Est $234k · 36% under

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Why this score? — see what drove the B grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +29.7/30.0
• ARV discount +15.0/15.0
• DSCR +10.0/10.0
• 1% rule +7.2/10.0
• Rent growth +3.6/5.0
• Livability +3.2/5.0
• Condition / age +2.5/5.0
• Schools +1.3/10.0
• Appreciation +0.0/10.0

Listing remarks

LOCATION, LOCATION, LOCATION! This Home Is Perfect For A First Time Buyer or Rental! Brick Ranch With Easy Access To I-75 and I-675 - 3 Bedroom 1 Full Bath - Original REAL Hardwood Floors Throughout (even under carpet) and Open Floor Plan Offer Great Flow and So Many Possibilities - Fireplace - Move In Ready With Room To Update and Personalize - Easy FHA and VA Financing Available - Quick Commute Options and Prime Ellenwood Setting - Possible Future Commercial Great Investment - Call Agent Today For A Private Showing

Key facts

• Open floor plan
• Easy access to i-675
• Move in ready

Tags

• EASY ACCESS TO I-75
• EASY ACCESS TO I-675
• ORIGINAL REAL HARDWOOD FLOORS
• OPEN FLOOR PLAN
• FIREPLACE
• MOVE IN READY

Property features AI

Finance

• Other: Accepted financing: Cash, Conventional, FHA, VA
• HOA & community: No HOA

Exterior

• Parking: Off-street parking; Parking pad; Open parking available
• Utilities: Public water; Septic tank sewer; Electricity available; Cable available; High-speed internet available; Phone service available
• Home design: Single-family residence (house); Resale property; Built in 1960
• Construction: Brick construction; Composition roof; Partial unfinished basement (dirt floor)
• Exterior features: Level lot; Back yard with chain-link fencing

Interior

• Kitchen: Laundry area located in the kitchen
• Bedrooms: 3 bedrooms, all on the main level
• Flooring: Carpet; Hardwood; Laminate
• Bathrooms: 1 full bathroom on the main level
• Heating & cooling: Central heating; Window air conditioning units
• Interior features: One-level layout; Public-record living area of 1,075 (above grade); Basement is partial, unfinished with a dirt floor; Masonry fireplace in the family room
• Laundry & utility: Laundry in kitchen

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $150k.

Deal economics

• At list price, monthly cash flow is $547 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $150k).
• Recommended offer: $148k (1.5% below list) — sets the bar for market timing.
• Cap rate 10.7% vs local median 4.9% in Morrow — 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.

Location & tenants

• Location reads 65/100 on livability (#229 in GA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities D, employment D, crime F.
• Clayton County (suburban): math 11% / reading 20% proficiency, ranked #155 of 174 in GA (top 89%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 78% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: East Clayton Elementary School (math 8% / reading 17%, grade F, #1,032 of 1,228 statewide, top 85%, 632 students, 90% FRL); Adamson Middle School (math 15% / reading 32%, grade F, #319 of 470 statewide, top 68%, 557 students, 90% FRL); Morrow High School (math 12% / reading 22%, grade F, #277 of 424 statewide, top 67%, 1,980 students, 91% FRL).
• Market conditions: Rents rising fast (+4.6%/yr); 254 active listings in the ZIP; 18 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 865 units permitted in Clayton County in 2024 (448 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Clayton County population projected at +29% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 4.6% rent growth), your $42k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• It's been on market 24 days — a 2% lower offer ($148k) is reasonable based on typical stale-listing flexibility.
• 6 sale attempts; this cycle's ask has dropped $10k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $26k; list at $150k implies a 466% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Climate carrying-cost: moderate wind risk, 26% 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.

Recommended offer $147,750 (1.5% below list)

Questions for the listing agent

1. Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. Crime grade is F 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?
5. 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.
6. 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.
7. 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.

Investment metrics

• 1% rule: 1.22% ✓
• Cap rate: 10.67%
• Cash-on-cash: 15.64%
• DSCR: 1.70
• GRM: 6.8

CMA / ARV

• ARV (median comp): $234,477
• List price: $150,000
• Delta: -25.37%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 2 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
5827 Northspring Dr	0.43mi	3/1.5	1,201 (+12%)	18mo	$190,000	$158	43
5791 Cobbrook Dr	0.57mi	3/1.5	1,201 (+12%)	12mo	$201,000	$167	42

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 4.56% rent growth · sell at horizon

5-year hold

• IRR: 8.0%
• Equity multiple: 1.32×
• Total profit: $13,410
• Equity at exit: $22,365

10-year hold

• IRR: 18.4%
• Equity multiple: 2.63×
• Total profit: $68,662
• Equity at exit: $12,969

Cash invested: $42,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 90 Strongly Landlord-Friendly
• State Georgia: 90 Strongly Landlord-Friendly · R+3
• County: — inherits STATE
• City: — inherits STATE

Magistrate court evictions in 10-30 days; no rent control; preempted; few tenant protections.

Methodology + full state rankings →

ZIP-level market 30294

• Home prices YoY: -25.0%
• Rents YoY: 4.6%
• Active inventory: 254
• Price-to-rent: 6.8×

Monthly cashflow live

• Estimated rent: $1,826 high
• Mortgage (P&I): −$787
• Tax from tax record: −$46 /mo · $553/yr
• Insurance: −$62
• HOA: −$0
• Vacancy / Maint / Mgmt: −$383
• Net cashflow: $547

Break-even live

Break-even rent $1,133

Max offer price $150,000

Occupancy floor 65%

Sensitivity live

Price	-10% $632	-5% $590	+0% $547	+5% $505	+10% $463
Rent	-10% $403	-5% $475	+0% $547	+5% $620	+10% $692
Rate	-1.0pp $623	-0.5pp $586	base $547	+0.5pp $509	+1.0pp $469

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $37,500
• Closing costs: $4,500
• Reserves months: —
• Total cash needed: —

Rent comps 18 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
5704 Wesson Dr Ellenwood, GA	3.0	2.0	1480	$1,710	$1.16	44d	1	0.74mi
6068 Monica Dr Morrow, GA	3.0	2.0	1210	$1,700	$1.40	23d	1	0.77mi
5958 Sherwood Pl Unit 5958 Ellenwood, GA	2.0	2.5	1468	$995	$0.68	44d	1	0.85mi
5958 Sherwood Pl Ellenwood, GA	2.0	2.5	1468	$995	$0.68	25d	1	0.85mi
6043 Deerfield Ct Morrow, GA	3.0	2.0	1370	$1,741	$1.27	0d	1	0.89mi
2445 Rex Rd Ellenwood, GA	1.0–3.0	1.0–2.0	1149	$1,569	$1.37	0d	10	0.90mi
2690 Lake Harbin Rd Morrow, GA	3.0	1.0	980	$1,653	$1.69	0d	1	0.98mi
6010 Fairfield Dr Morrow, GA	3.0	1.5	1246	$1,841	$1.48	3d	1	1.06mi
5720 Buck Ct Ellenwood, GA	3.0	2.0	1232	$1,850	$1.50	25d	1	1.09mi
5731 Buck Ct Ellenwood, GA	3.0	2.0	1242	$1,525	$1.23	13d	1	1.12mi
6498 Menlo Way Rex, GA	4.0	2.0	1246	$1,895	$1.52	25d	1	1.22mi
6494 Bobolink Ct Rex, GA	3.0	2.0	1310	$1,630	$1.24	0d	1	1.23mi
2260 Hammond Ct Ellenwood, GA	3.0	2.0	1248	$1,850	$1.48	44d	1	1.23mi
6424 Monica Dr Morrow, GA	3.0	2.0	1125	$1,400	$1.24	44d	1	1.24mi
6511 Mill Ct Morrow, GA	3.0	2.0	1454	$1,881	$1.29	44d	1	1.30mi
6593 Sleepy Hollow Ln Morrow, GA	2.0	2.0	1152	$1,550	$1.35	44d	1	1.45mi
6572 Sleepy Hollow Ln Morrow, GA	2.0	1.5	1152	$1,400	$1.22	25d	1	1.46mi
5248 Katherine Village Dr Ellenwood, GA	3.0	2.5	1364	$1,995	$1.46	21d	1	1.48mi

Listing history 28 events

1. 2026-06-21
   days on market $150,000 Active 24 DOM
2. 2026-06-18
   days on market $150,000 Active 21 DOM
3. 2026-06-17
   days on market $150,000 Active 20 DOM
4. 2026-06-16
   days on market $150,000 Active 19 DOM
5. 2026-06-15
   days on market $150,000 Active 18 DOM
6. 2026-06-13
   days on market $150,000 Active 16 DOM
7. 2026-06-09
   days on market $150,000 Active 12 DOM
8. 2026-06-08
   days on market $150,000 Active 11 DOM
9. 2026-06-07
   days on market $150,000 Active 10 DOM
10. 2026-06-04
    days on market $150,000 Active 7 DOM
11. 2026-06-03
    days on market $150,000 Active 6 DOM
12. 2026-06-02
    days on market $150,000 Active 5 DOM
13. 2026-06-01
    statusdays on market $150,000 Active 4 DOM
14. 2026-05-31
    days on market $150,000 Price Change 3 DOM
15. 2026-04-07
    listed $175,000 New 522-char remark
16. 2026-04-07
    historical
17. 2026-01-15
    historical
18. 2026-01-15
    historical
19. 2026-01-14
    listed $175,000 New
20. 2026-01-14
    listed $175,000 New
21. 2026-01-09
    price $175,000
22. 2026-01-09
    listed $285,000 New
23. 2026-01-08
    historical
24. 2026-01-07
    price $175,000
25. 2025-10-01
    price $180,000
26. 2025-09-02
    price $185,000
27. 2025-08-12
    listed $200,000 New
28. 1978-06-01
    soldstatus $26,500

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast GA · Resets to sale price

• Current annual tax: $553 · $46/mo
• Projected year-2 tax: $1,380 · $115/mo
• Expected delta: +$827/yr (+$69/mo · 149.3%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 6/10 Major 7 d/yr ≥107°F today · 18 d/yr by 30 yrs out
• 💨 Wind 5/10 Major 26% chance of damaging wind over 30 yrs
• 🫁 Air quality 4/10 Moderate 4 unhealthy d/yr today · 6 by 30 yrs out

Taxation est. · year 1

• Rental income: $21,914
• − Mortgage interest: −$8,402
• − Property taxes: −$553
• − Insurance: −$750
• − Repairs & maintenance: −$1,753
• − Management: −$1,753
• − Depreciation: −$4,364
• Taxable income: $4,338
• Est. tax owed @ 24.0%: −$1,041
• After-tax cash flow: $5,528/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Clayton County
• NCES district ID: 1301230
• Math proficiency: 11% ▼ -13.00%
• Reading proficiency: 20% ▼ -9.00%
• Median HH income: $42,266
• Composite: 13.41/100
• National rank: #9527
• State rank: #155 of 174 in GA

Livability — Morrow

• Score: 65/100
• State rank: #229
• US rank: #13314

Category grades

Amenities D Commute F Cost of living A+ Crime F Employment D Housing A+ Health & safety C User ratings C

Schools grade is shown separately in the Schools card above.

Census & demographics

• County: Henry County · 316,359 people
• City population: 28,693
• Metro: Atlanta-Sandy Springs-Alpharetta, GA
• Population (ZIP): 41,983
• Household income: $79,762
• Rent vs Own: 19.4% rent · 80.6% own
• Severe rent burden: 864.0

Population outlook (Clayton County) Hauer SSP2

• Today (2025): 310,777 people
• By 2030: 329,762 · +6.1%
• By 2040: 368,052 · +18.4%
• By 2050: 401,196 · +29.1%
• By 2075: 472,488 · +52.0%
• By 2100: 500,446 · +61.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (84%)
• Race & ethnicity: Black 84% Hispanic / Latino 7% Two or more races 6% White 6% Asian 1%
• Hispanic origin (detail): Mexican 6%
• Common ancestry: Hispanic 1%
• Foreign-born: 7% · Canada, Vietnam
• Languages at home: 91% English-only · Spanish 6% Vietnamese 1% French/Haitian/Cajun 1%

Political lean MEDSL · Clayton

• 2024 margin: Solid D (+69.2) · D 84.3% · R 15.1%
• 2008→2024 swing: +2.8pp toward D · 2008: 66.4pp · 2024: 69.2pp
• All cycles: 2024: D+69.2 2020: D+70.9 2016: D+71.9 2012: D+70.1 2008: D+66.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -70.99%
• Current HPI: 213.1999
• Rent YoY: ▲ 4.56%
• Metro: Atlanta-Sandy Springs-Alpharetta, GA
• State GDP YoY: ▲ 2.66%
• F500 in state: 28

Industry mix (Fortune 500 HQ in GA)

Industry	F500 HQs	Revenue
▸Paper / Packaging	2	$29B
▸Retail	1	$160B
▸Transportation / Logistics	1	$91B
▸Airlines	1	$62B
▸Consumer Goods	1	$47B
▸Utilities	1	$25B

Price history

+466.0% since first listed

17 events — show timeline

• 2026-05-29 Price Changed $150,000 GAMLS
• 2026-05-28 Listed $160,000 GAMLS
• 2026-05-26 Listing Removed — GAMLS
• 2026-04-07 Listing Removed — GAMLS
• 2026-04-07 Listed $175,000 GAMLS
• 2026-01-15 Listing Removed — GAMLS
• 2026-01-15 Listing Removed — GAMLS
• 2026-01-14 Listed $175,000 GAMLS
• 2026-01-14 Listed $175,000 GAMLS
• 2026-01-09 Price Changed $175,000 GAMLS
• 2026-01-09 Listed $285,000 GAMLS
• 2026-01-08 Listing Removed — GAMLS
• 2026-01-07 Price Changed $175,000 GAMLS
• 2025-10-01 Price Changed $180,000 GAMLS
• 2025-09-02 Price Changed $185,000 GAMLS
• 2025-08-12 Listed $200,000 GAMLS
• 1978-06-01 Sold (Public Records) $26,500 Public Records

Property tax history

+7.5%/yr

Latest (2025): $553 · -3.7% YoY. Source: county tax records.