Pearson Plan

Cartersville, GA 30120

$387,100F

5 bd · 3.0 ba · 2,803 sqft · Built — · SingleFamily · Active · 123 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,867/mo
• Mortgage (P&I): −$2,228
• Tax + insurance: −$708
• HOA: −$0
• Vac / Maint / Mgmt: −$602
• Net cashflow: $-671/mo
• Annual: $-8,049/yr
• Cap rate: 4.40%
• Cash-on-cash: -6.77%
• DSCR: 0.70
• 1% rule: 0.67%
• Cash to close: $118,948

Investor read

• This is a 5-bed/3.0-bath single-family listed at $387k. Condition is rated good.
• At list price, monthly cash flow is $-671 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $328k (15.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $287k (25.9% below list).
• It's been on market 123 days — a 12% lower offer ($341k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $287k (25.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#43 in GA, #4,800 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, amenities A; Watch: commute F.
• Bartow County (rural): math 33% / reading 34% proficiency, ranked #70 of 174 in GA (top 40%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mission Road Elementary School (math 45% / reading 32%, grade F, #463 of 1,228 statewide, top 38%, 440 students, 58% FRL); Woodland Middle School At Euharlee (math 27% / reading 44%, grade F, #185 of 470 statewide, top 40%, 684 students, 52% FRL); Woodland High School (math 11% / reading 36%, grade F, #206 of 424 statewide, top 48%, 1,451 students, 48% FRL) — zoned schools at 52% FRL track the district average.
• Market conditions: Rents soft (-0.2%/yr); 824 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 51d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,618 units permitted in Bartow County in 2024 (265 in 5+ unit buildings).
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 40% of the median local income ($87k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 123 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?
• 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.