6998 Us 421 S

Goldston, NC 27207

$225,000D+

3 bd · 2.0 ba · 1,935 sqft · Built 1981 · SingleFamily · Active · 110 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,671/mo
• Mortgage (P&I): −$1,180
• Tax + insurance: −$160
• HOA: −$0
• Vac / Maint / Mgmt: −$351
• Net cashflow: $-20/mo
• Annual: $-237/yr
• Cap rate: 6.19%
• Cash-on-cash: -0.38%
• DSCR: 0.98
• 1% rule: 0.74%
• Cash to close: $63,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $225k.
• At list price, monthly cash flow is $-20 ($-237/yr) — negative.
• To cash-flow at today's rent, offer at most $222k (1.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $167k (25.7% below list).
• It's been on market 110 days — a 9% lower offer ($205k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $167k (25.7% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($2k loan paydown + $12k appreciation (5.5% local appreciation)).
• Location reads 65/100 on livability (#323 in NC) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A; Watch: health & safety C-, crime D, employment D.
• Chatham County Schools (rural): math 45% / reading 51% proficiency, ranked #68 of 178 in NC (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Bonlee School (math 31% / reading 38%, grade F, #835 of 1,410 statewide, top 62%, 292 students, 61% FRL); Chatham Central High (math 57% / reading 52%, grade C-, #270 of 535 statewide, top 52%, 364 students, 48% FRL).
• Market conditions: 9 active listings in the ZIP; 458 units permitted in Chatham County in 2024 (0 in 5+ unit buildings).
• Chatham County population projected at +26% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (5.5% appreciation + 3.0% rent growth), your $63k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 110 days. Have you received any prior offers? Is the seller open to a 26% 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 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?
• Crime grade is D 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?
• 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.