1240 W Michigan Ave · Southern Pines, NC 28387

$234,900

3 bd · 1.0 ba · 910 sqft · SingleFamily public records · 63 Days on market

Built 1979 0.33 ac lot Est $182k · 29% over

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Why this score? — see what drove the D+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +21.7/30.0
• DSCR +6.9/10.0
• 1% rule +4.4/10.0
• Schools +4.4/10.0
• Livability +3.2/5.0
• Condition / age +2.5/5.0
• Rent growth +2.3/5.0
• ARV discount +0.0/15.0
• Appreciation +0.0/10.0

Listing remarks

This move-in ready home in Southern Pines is in a prime location, just a few blocks from the new elementary school, medical offices, and plenty of nearby dining options. With fresh interior paint, new LVP flooring, and a new roof, it's perfect for keeping expenses low for first-time buyers or investors. A must-see at this price!

Key facts

• 0.33 acre lot
• Parking
• Built 1979

Property features AI

Finance

• Other: Zoned RS-1

Exterior

• Parking: Has a carport (1 space); Gravel parking surface
• Utilities: Public water; Public sewer (connected); Cable available; Water connected; Sewer connected
• Home design: Single family residence; One story; Entry level is 1
• Construction: Vinyl siding and frame construction; Block foundation; Shingle roof; Built with one level
• Exterior features: No patio or porch; No fencing; Storage structure on property; Interior lot; Paved road access; Road frontage on city street and state road; Has a view

Interior

• Kitchen: Refrigerator; Electric range
• Flooring: Vinyl flooring
• Bathrooms: 1 full bathroom
• Heating & cooling: Heat pump heating; Electric heating; Central air conditioning; Heat pump cooling
• Interior features: Storm windows; Total of 5 rooms
• Laundry & utility: Electric water heater

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $235k.

Deal economics

• At list price, monthly cash flow is $360 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $220k (6.2% below list).
• Recommended offer: $220k (6.2% below list) — sets the bar for 1% rule.
• Cap rate 8.1% vs local median 2.1% in Southern Pines — 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.

Location & tenants

• Location reads 65/100 on livability (#327 in NC) — a middle-class / working-renter tenant base. Strengths: housing A; Watch: health & safety C-, crime D+, amenities F.
• Moore County Schools (rural): math 48% / reading 54% proficiency, ranked #58 of 178 in NC (top 33%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Southern Pines Elementary (math 41% / reading 48%, grade F, #574 of 1,410 statewide, top 43%, 612 students, 53% FRL); Crain'S Creek Middle (math 37% / reading 47%, grade D-, #199 of 475 statewide, top 43%, 592 students, 51% FRL); Pinecrest High (math 66% / reading 72%, grade B, #131 of 535 statewide, top 25%, 2,221 students, 34% FRL).
• Market conditions: Rents soft (-0.8%/yr); 210 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 941 units permitted in Moore County in 2024 (0 in 5+ unit buildings).
• This rent runs 35% of the median local income ($75k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Moore County population projected at +29% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 63 days — a 6% lower offer ($221k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Climate carrying-cost: major wind risk, 64% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $220,400 (6.2% below list)

Questions for the listing agent

1. It's been on market 63 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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?
7. 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.
8. 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.
9. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 0.94% ✗
• Cap rate: 8.13%
• Cash-on-cash: 6.57%
• DSCR: 1.29
• GRM: 8.9

CMA / ARV

• ARV (on-the-fly): $182,000
• Comps found: 4

Show comp detail 4 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1255 W Illinois Ave	0.31mi	2/1.0 (-1)	794 (-13%)	0mo	$159,000	$200	59
700 S Hardin St	0.14mi	3/1.0	1,035 (+14%)	22mo	$212,000	$205	52
1657 W New York Ave	0.70mi	3/1.0	840 (-8%)	4mo	$150,000	$179	51
568 S Henley St	0.45mi	2/2.0 (-1)	800 (-12%)	23mo	$135,000	$169	30

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: -9.3%
• Equity multiple: 0.67×
• Total profit: $-21,705
• Equity at exit: $35,024

10-year hold

• IRR: -3.9%
• Equity multiple: 0.77×
• Total profit: $-14,801
• Equity at exit: $20,310

Cash invested: $65,772 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 85 Strongly Landlord-Friendly
• State North Carolina: 85 Strongly Landlord-Friendly · R+3
• County: — inherits STATE
• City: — inherits STATE

10-day notice; preempted; landlord-favorable but court speed varies.

Methodology + full state rankings →

ZIP-level market 28387

• Rents YoY: -0.8%
• Active inventory: 210
• Price-to-rent: 8.9×

Monthly cashflow live

• Estimated rent: $2,204 medium
• Mortgage (P&I): −$1,232
• Tax from tax record: −$51 /mo · $616/yr
• Insurance: −$98
• HOA: −$0
• Vacancy / Maint / Mgmt: −$463
• Net cashflow: $360

Break-even live

Break-even rent $1,748

Max offer price $234,900

Occupancy floor 79%

Sensitivity live

Price	-10% $493	-5% $427	+0% $360	+5% $294	+10% $227
Rent	-10% $186	-5% $273	+0% $360	+5% $447	+10% $534
Rate	-1.0pp $478	-0.5pp $420	base $360	+0.5pp $299	+1.0pp $237

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $58,725
• Closing costs: $7,047
• Reserves months: —
• Total cash needed: —

Rent comps 3 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
50 Pavilion Way Southern Pines, NC	1.0–3.0	1.0–2.0	1116	$2,392	$2.14	22d	74	0.58mi
400 Universal Rd Southern Pines, NC	1.0–3.0	1.0–2.0	1069	$2,149	$2.01	15d	158	0.78mi
24 Hutchinson Rd Southern Pines, NC	2.0	2.0	1100	$1,445	$1.31	24d	1	1.34mi

Listing history 17 events

1. 2026-06-19
   days on market $234,900 Active 63 DOM
2. 2026-06-18
   days on market $234,900 Active 62 DOM
3. 2026-06-17
   days on market $234,900 Active 61 DOM
4. 2026-06-16
   days on market $234,900 Active 60 DOM
5. 2026-06-15
   days on market $234,900 Active 59 DOM
6. 2026-06-14
   days on market $234,900 Active 57 DOM
7. 2026-06-13
   pricedays on market $234,900 Active 56 DOM
8. 2026-06-10
   days on market $239,900 Active 54 DOM
9. 2026-06-09
   days on market $239,900 Active 53 DOM
10. 2026-06-08
    days on market $239,900 Active 52 DOM
11. 2026-06-07
    days on market $239,900 Active 51 DOM
12. 2026-06-05
    days on market $239,900 Active 48 DOM
13. 2026-06-02
    days on market $239,900 Active 46 DOM
14. 2026-06-01
    days on market $239,900 Active 45 DOM
15. 2026-05-31
    days on market $239,900 Active 44 DOM
16. 2026-05-30
    days on market $239,900 Active 43 DOM
17. 2026-04-17
    listed $239,900 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast NC · Resets to sale price

• Current annual tax: $616 · $51/mo
• Projected year-2 tax: $1,926 · $161/mo
• Expected delta: +$1,310/yr (+$109/mo · 212.5%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 4/10 Moderate
• 🌡 Heat 6/10 Major 7 d/yr ≥105°F today · 16 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 64% chance of damaging wind over 30 yrs
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $26,448
• − Mortgage interest: −$13,158
• − Property taxes: −$616
• − Insurance: −$1,174
• − Repairs & maintenance: −$2,116
• − Management: −$2,116
• − Depreciation: −$6,833
• Taxable income: $434
• Est. tax owed @ 24.0%: −$104
• After-tax cash flow: $4,217/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Moore County Schools
• NCES district ID: 3703090
• Math proficiency: 48% ▲ 5.00%
• Reading proficiency: 54% ▲ 5.00%
• Median HH income: $50,333
• Composite: 43.63/100
• National rank: #2967
• State rank: #58 of 178 in NC

Livability — Southern Pines

• Score: 65/100
• State rank: #327
• US rank: #13383

Category grades

Amenities F Commute F Cost of living B- Crime D+ Employment B- Housing A Health & safety C- User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Southern Pines, NC
• County: Moore County · 75,247 people
• City population: 16,059
• Metro: Pinehurst-Southern Pines, NC
• Population (ZIP): 16,059
• Household income: $74,830
• Rent vs Own: 44.5% rent · 55.5% own
• Severe rent burden: 760.0

Population outlook (Moore County) Hauer SSP2

• Today (2025): 106,902 people
• By 2030: 113,134 · +5.8%
• By 2040: 125,682 · +17.6%
• By 2050: 137,811 · +28.9%
• By 2075: 164,387 · +53.8%
• By 2100: 175,595 · +64.3%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (74%)
• Race & ethnicity: White 74% Black 12% Two or more races 8% Hispanic / Latino 8% Asian 1%
• Hispanic origin (detail): Mexican 2% Puerto Rican 3%
• Common ancestry: Slovak 4% Lithuanian 4% Serbian 3%
• Foreign-born: 6% · Canada, Vietnam
• Languages at home: 91% English-only · Spanish 5% French/Haitian/Cajun 1% Arabic 1%

Political lean MEDSL · Moore

• 2024 margin: Strong R (+29.5) · D 34.8% · R 64.3%
• 2008→2024 swing: -8.1pp toward R · 2008: -21.4pp · 2024: -29.5pp
• All cycles: 2024: R+29.5 2020: R+27.4 2016: R+29.6 2012: R+28.1 2008: R+21.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -125.18%
• Current HPI: 196.7829
• Rent YoY: ▼ -0.76%
• Metro: Pinehurst-Southern Pines, NC
• State GDP YoY: ▲ 3.28%
• F500 in state: 26

Industry mix (Fortune 500 HQ in NC)

Industry	F500 HQs	Revenue
▸Financial Services	2	$213B
▸Retail	2	$95B
▸Industrial Conglomerate	1	$38B
▸Metals / Steel	1	$35B
▸Utilities	1	$30B
▸Industrial Machinery	1	$19B

Price history

1 event — show timeline

• 2026-04-17 Listed $239,900 Hive MLS

Property tax history

+0.4%/yr

Latest (2024): $616 · -3.0% YoY. Source: county tax records.