130 First St

Franklin, NC 28734

$260,000B+

4 bd · 4.0 ba · — sqft · Built 1915 · MultiFamily · Active · 90 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,944/mo
• Mortgage (P&I): −$1,363
• Tax + insurance: −$433
• HOA: −$0
• Vac / Maint / Mgmt: −$1,668
• Net cashflow: $4,479/mo
• Annual: $53,748/yr
• Cap rate: 26.97%
• Cash-on-cash: 73.83%
• DSCR: 4.28
• 1% rule: 3.06%
• Cash to close: $72,800

Investor read

• This is a 4-bed/4.0-bath multifamily listed at $260k. Condition is rated fair.
• At list price, monthly cash flow is $4k ($54k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $260k).
• It's been on market 90 days — a 6% lower offer ($244k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $244k (6.0% below list) — sets the bar for market timing.
• In year one you build about $17k of equity ($2k loan paydown + $16k appreciation (6.0% local appreciation)).
• Location reads 74/100 on livability (#55 in NC, #4,469 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing B+; Watch: crime C-, employment D+, commute F.
• Macon County Schools (rural): math 47% / reading 50% proficiency, ranked #71 of 178 in NC (top 40%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: East Franklin Elementary (math 47% / reading 37%, grade F, #633 of 1,410 statewide, top 48%, 360 students, 99% FRL); Macon Middle School (math 38% / reading 48%, grade D-, #191 of 475 statewide, top 41%, 599 students, 59% FRL); Franklin High (math 77% / reading 60%, grade B, #134 of 535 statewide, top 25%, 1,005 students, 51% FRL) — zoned schools average 70% FRL vs 52% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1915 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 608 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 218 units permitted in Macon County in 2024 (0 in 5+ unit buildings).
• Macon County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (6.0% appreciation + 3.0% rent growth), your $73k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$43k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 27.0% vs local median 2.4% in Franklin — 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.
• At $7,944/mo this rent would consume 176% of the median local household income ($54k/yr) (locally 602% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 90 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1915 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Severe weathering
• Major: exterior siding — Significant wear
• Major: flooring — Severe wear
• Major: interior walls — Peeling paint
• Major: bathrooms — Old fixtures
• Major: HVAC/mechanicals — No visible systems