2 Mallory Dr

Adairsville, GA 30103

$292,000D-

3 bd · 2.0 ba · 1,274 sqft · Built 2000 · SingleFamily · Pending · 98 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,966/mo
• Mortgage (P&I): −$1,531
• Tax + insurance: −$322
• HOA: −$0
• Vac / Maint / Mgmt: −$413
• Net cashflow: $-300/mo
• Annual: $-3,600/yr
• Cap rate: 5.06%
• Cash-on-cash: -4.40%
• DSCR: 0.80
• 1% rule: 0.67%
• Cash to close: $81,760

Investor read

• This is a 3-bed/2.0-bath single-family listed at $292k.
• At list price, monthly cash flow is $-300 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $239k (18.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $197k (32.7% below list).
• It's been on market 98 days — a 9% lower offer ($266k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $197k (32.7% below list) — sets the bar for 1% rule.
• In year one you build about $30k of equity ($2k loan paydown + $28k appreciation (9.7% local appreciation)).
• Location reads 72/100 on livability (#70 in GA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: amenities F, 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: Clear Creek Elementary School (math 48% / reading 27%, grade F, #474 of 1,228 statewide, top 39%, 675 students, 52% FRL); Adairsville Middle School (math 36% / reading 40%, grade F, #159 of 470 statewide, top 34%, 843 students, 49% FRL); Adairsville High School (math 24% / reading 18%, grade F, #225 of 424 statewide, top 54%, 1,170 students, 44% FRL) — zoned schools at 48% FRL track the district average.
• Market conditions: 182 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 2d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 1,618 units permitted in Bartow County in 2024 (265 in 5+ unit buildings).
• 3 sale attempts since 17y ago 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.
• Current owner paid $253k; 15% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$48k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.1% vs local median 4.1% in Adairsville — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• This rent runs 30% of the median local income ($78k/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 98 days. Have you received any prior offers? Is the seller open to a 33% 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.