1105 Morehead Ave · Durham, NC 27707

$237,500

4 bd · 2.0 ba · 1,500 sqft · MultiFamily public records · 3 Days on market

Built 1975 6,970 sqft lot

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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 +30.0/30.0
• DSCR +10.0/10.0
• 1% rule +8.5/10.0
• ARV discount +7.5/15.0
• Livability +4.0/5.0
• Schools +3.0/10.0
• Condition / age +2.5/5.0
• Rent growth +2.2/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 2 units. confirmed

Listing remarks

This duplex presents an opportunity to acquire an entry-level multifamily investment in Durham at a basis well below recent duplex sales in the surrounding market. New roof in 2024. The property features 2-bedroom units on each side. One unit is occupied at $735/month providing in-place income and the second unit vacant and ready for renovation and lease-up. This tenant is on a month-to-month lease and originally occupied in 2022. Investors can improve the vacant side while offsetting carrying costs through existing rental income, creating a clear path to increased cash flow and long-term value through stabilization of both units. Projected market rents are $1150 per unit. Selling ''as is''

Key facts

• In-place income
• New roof
• 6,970 sq ft lot

Tags

• NEW ROOF
• IN-PLACE INCOME

Property features AI

Finance

• Other: Property located in Durham County, ZIP 27707
• Financial info: Two total units (one currently month-to-month); Tenants responsible for electricity and water; owner responsibilities noted in remarks
• HOA & community: No association

Exterior

• Parking: Driveway parking; 2 open parking spaces
• Utilities: Public water; Public sewer
• Home design: Duplex; One level
• Construction: Engineered wood and other construction materials
• Exterior features: Shingle roof; Lot approximately 0.16 acres; Public-maintained road access

Interior

• Bedrooms: 4 bedrooms
• Flooring: Carpet; Luxury vinyl; Vinyl
• Bathrooms: 2 full bathrooms
• Heating & cooling: Baseboard heating; Wall unit cooling
• Interior features: Washer hookup available; Carpet and vinyl/Luxury Vinyl flooring
• Laundry & utility: Washer hookup

What this means for you Summary

Snapshot

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $238k.

Deal economics

• At list price, monthly cash flow is $910 ($11k/yr) — positive. Per door: $455/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $238k).
• Cap rate 10.9% vs local median 3.0% in Durham — 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 81/100 on livability (#15 in NC, #1,411 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+; Watch: schools D+, crime F.
• Durham Public Schools (urban): math 29% / reading 39% proficiency, ranked #132 of 178 in NC (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents soft (-1.2%/yr); 299 active listings in the ZIP; 26 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); 2,905 units permitted in Durham County in 2024 (955 in 5+ unit buildings).
• At $3,203/mo this rent would consume 52% of the median local household income ($74k/yr) (locally 2274% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Durham County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $237,500

Questions for the listing agent

1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
3. Built in 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
6. 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?
7. 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.
8. 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.
9. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.35% ✓
• Cap rate: 10.89%
• Cash-on-cash: 16.42%
• DSCR: 1.73
• GRM: 6.2

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: 4.1%
• Equity multiple: 1.15×
• Total profit: $10,124
• Equity at exit: $35,412

10-year hold

• IRR: 10.6%
• Equity multiple: 1.71×
• Total profit: $47,317
• Equity at exit: $20,535

Cash invested: $66,500 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 85 Strongly Landlord-Friendly
• State North Carolina: 85 Strongly Landlord-Friendly · R+3
• County: — inherits STATE
• City: — inherits STATE

10-day notice; preempted; landlord-favorable but court speed varies.

Methodology + full state rankings →

ZIP-level market 27707

• Rents YoY: -1.2%
• Active inventory: 299
• Price-to-rent: 12.4×

Monthly cashflow live

• Estimated rent: $3,203 high
• Mortgage (P&I): −$1,245
• Tax from tax record: −$276 /mo · $3,311/yr
• Insurance: −$99
• HOA: −$0
• Vacancy / Maint / Mgmt: −$673
• Net cashflow: $910

Break-even live

Break-even rent $2,051

Max offer price $237,500

Occupancy floor 67%

Sensitivity live

Price	-10% $1,044	-5% $977	+0% $910	+5% $843	+10% $776
Rent	-10% $657	-5% $784	+0% $910	+5% $1,037	+10% $1,163
Rate	-1.0pp $1,030	-0.5pp $970	base $910	+0.5pp $848	+1.0pp $786

2-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 2× units	2	1	$3,202
Total (2 units)			$3,203

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: $59,375
• Closing costs: $7,125
• Reserves months: —
• Total cash needed: —

Rent comps 26 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
815 Pauli Murray Pl Durham, NC	3.0	2.5	1450	$3,400	$2.34	24d	1	0.17mi
605 W Main St Durham, NC	3.0	1.0–2.0	977	$3,628	$3.71	14d	48	0.69mi
910 Scout Dr Durham, NC	3.0	2.5	1508	$4,000	$2.65	24d	1	0.81mi
511 S Mangum St Durham, NC	3.0	1.0–2.0	1159	$4,115	$3.55	14d	29	0.83mi
1114 South St Durham, NC	3.0	2.5	1418	$3,000	$2.12	24d	1	0.86mi
2003 Ward St Durham, NC	3.0	2.0	1544	$2,700	$1.75	14d	1	0.96mi
441 S Dillard St Durham, NC	1.0–3.0	1.0–2.5	1153	$3,389	$2.94	14d	21	1.00mi
504 E Pettigrew St Durham, NC	3.0	1.0–2.0	1092	$2,528	$2.32	21d	30	1.04mi
701 Washington St Durham, NC	1.0–3.0	1.0–2.0	996	$5,241	$5.26	14d	214	1.10mi
510 E Pettigrew St Durham, NC	3.0	1.0–2.0	996	$3,130	$3.14	14d	29	1.10mi
318 W Corporation St Durham, NC	3.0	1.0–2.0	900	$3,750	$4.17	14d	55	1.20mi
749 9th St Durham, NC	3.0	1.0–2.0	1084	$3,999	$3.69	14d	97	1.22mi
500 E Main St Durham, NC	3.0	1.0–2.0	1002	$3,556	$3.55	14d	40	1.24mi
401 Moline St Durham, NC	4.0	2.0	1288	$1,995	$1.55	24d	1	1.25mi
514 E Umstead St Durham, NC	3.0	2.0	1134	$1,625	$1.43	24d	1	1.26mi
900 Dacian Ave Unit B Durham, NC	3.0	2.0	1550	$2,595	$1.67	24d	1	1.26mi
2029 Bedford St Durham, NC	2.0–3.0	1.0–3.0	1485	$1,870	$1.26	14d	13	1.27mi
411 Dunstan Ave Durham, NC	3.0	2.0	1091	$2,500	$2.29	24d	1	1.28mi
704 15th St Durham, NC	3.0	1.0–2.5	1257	$4,306	$3.42	14d	44	1.30mi
1819 Cecil St Durham, NC	3.0	2.0	1105	$1,795	$1.62	24d	1	1.32mi
730 Rutherford St Durham, NC	3.0	1.0–3.0	1030	$4,105	$3.98	14d	1	1.35mi
810 9th St Durham, NC	3.0	1.0–3.0	988	$3,865	$3.91	14d	47	1.35mi
211 Hargrove St Unit 1300731P Durham, NC	3.0	3.0	2131	$5,298	$2.49	14d	1	1.42mi
701 Grant St Durham, NC	3.0	2.0	1145	$1,850	$1.62	24d	1	1.45mi
1006 Grant St Durham, NC	4.0	4.0	2201	$3,120	$1.42	24d	1	1.49mi
1008 Grant St Durham, NC	4.0	4.0	2201	$3,120	$1.42	24d	1	1.50mi

Listing history 4 events

1. 2026-06-18
   days on market $237,500 Active 3 DOM
2. 2026-06-17
   days on market $237,500 Active 2 DOM
3. 2026-06-15
   remarks 699-char remark
4. 2026-06-15
   listed $237,500 Active 1 DOM

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

Tax reassessment forecast NC · Resets to sale price

• Current annual tax: $3,311 · $276/mo
• Projected year-2 tax: $3,311 · $276/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ 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 ≥105°F today · 16 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $38,436
• − Mortgage interest: −$13,304
• − Property taxes: −$3,311
• − Insurance: −$1,188
• − Repairs & maintenance: −$3,075
• − Management: −$3,075
• − Depreciation: −$6,909
• Taxable income: $7,575
• Est. tax owed @ 24.0%: −$1,818
• After-tax cash flow: $9,102/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: Durham Public Schools
• NCES district ID: 3701260
• Math proficiency: 29% ▼ -3.00%
• Reading proficiency: 39% ▲ 2.00%
• Median HH income: $52,143
• Composite: 29.69/100
• National rank: #6457
• State rank: #132 of 178 in NC

Livability — Durham

• Score: 81/100
• State rank: #15
• US rank: #1411

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Durham, NC
• County: Durham County · 288,747 people
• City population: 288,747
• Metro: Durham-Chapel Hill, NC
• Population (ZIP): 51,274
• Household income: $74,406
• Rent vs Own: 52.3% rent · 47.7% own
• Severe rent burden: 2274.0

Population outlook (Durham County) Hauer SSP2

• Today (2025): 368,962 people
• By 2030: 402,686 · +9.1%
• By 2040: 468,677 · +27.0%
• By 2050: 531,727 · +44.1%
• By 2075: 660,446 · +79.0%
• By 2100: 739,971 · +100.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.70)
• Race & ethnicity: White 40% Black 33% Hispanic / Latino 17% Two or more races 9% Asian 5%
• Hispanic origin (detail): Mexican 7% Cuban 1%
• Common ancestry: Romanian 2% Lithuanian 2% Slovak 2%
• Foreign-born: 16% · Canada, China, South Korea
• Languages at home: 79% English-only · Spanish 14% Other Indo-European 1% Chinese 1%

Political lean MEDSL · Durham

• 2024 margin: Solid D (+61.9) · D 80.2% · R 18.2% · Other 1.6%
• 2008→2024 swing: +10.0pp toward D · 2008: 51.9pp · 2024: 61.9pp
• All cycles: 2024: D+61.9 2020: D+62.4 2016: D+60.4 2012: D+52.7 2008: D+51.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -467.75%
• Current HPI: 262.9732
• Rent YoY: ▼ -1.16%
• Metro: Durham-Chapel Hill, NC
• State GDP YoY: ▲ 3.28%
• F500 in state: 26

Industry mix (Fortune 500 HQ in NC)

Industry	F500 HQs	Revenue
▸Financial Services	2	$213B
▸Retail	2	$95B
▸Industrial Conglomerate	1	$38B
▸Metals / Steel	1	$35B
▸Utilities	1	$30B
▸Industrial Machinery	1	$19B

Price history

1 event — show timeline

• 2026-06-15 Listed $237,500 TMLS

Property tax history

+9.3%/yr

Latest (2025): $3,311 · +84.3% YoY. Source: county tax records.