112 Gillespie Dr

Dalton, GA 30721

$328,000D+

3 bd · 3.0 ba · 1,904 sqft · Built 1993 · MultiFamily · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,103/mo
• Mortgage (P&I): −$1,720
• Tax + insurance: −$320
• HOA: −$0
• Vac / Maint / Mgmt: −$652
• Net cashflow: $412/mo
• Annual: $4,939/yr
• Cap rate: 7.80%
• Cash-on-cash: 5.38%
• DSCR: 1.24
• 1% rule: 0.95%
• Cash to close: $91,840

Investor read

• This is a 3 × 1-bed/1-bath units multifamily listed at $328k.
• At list price, monthly cash flow is $412 ($5k/yr) — positive. Per door: $137/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $310k (5.4% below list).
• It's been on market 21 days — a 2% lower offer ($323k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $310k (5.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#172 in GA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D, amenities F, commute F.
• Whitfield County (rural): math 37% / reading 34% proficiency, ranked #62 of 174 in GA (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Eastside Elementary School (math 28% / reading 22%, grade F, #745 of 1,228 statewide, top 61%, 546 students, 86% FRL); Eastbrook Middle School (math 23% / reading 27%, grade F, #291 of 470 statewide, top 64%, 680 students, 87% FRL); Southeast Whitfield County High School (math 30% / reading 19%, grade F, #184 of 424 statewide, top 48%, 1,492 students, 76% FRL) — zoned schools average 83% FRL vs 61% district-wide (22 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 384 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 374 units permitted in Whitfield County in 2024 (35 in 5+ unit buildings).
• Whitfield County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $155k; list at $328k implies a 112% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.8% vs local median 3.4% in Dalton — 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 $3,103/mo this rent would consume 60% of the median local household income ($62k/yr) (locally 1156% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-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.
• 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.