255 Forest Ln

Colbert, GA 30628

$259,000D-

3 bd · 2.0 ba · 1,620 sqft · Built 1977 · SingleFamily · Under Contract · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,375/mo
• Mortgage (P&I): −$1,358
• Tax + insurance: −$432
• HOA: −$0
• Vac / Maint / Mgmt: −$289
• Net cashflow: $-704/mo
• Annual: $-8,444/yr
• Cap rate: 3.03%
• Cash-on-cash: -11.64%
• DSCR: 0.48
• 1% rule: 0.53%
• Cash to close: $72,520

Investor read

• This is a 3-bed/2.0-bath single-family listed at $259k.
• At list price, monthly cash flow is $-704 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $157k (39.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $138k (46.9% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $138k (46.9% below list) — sets the bar for 1% rule.
• In year one you build about $26k of equity ($2k loan paydown + $24k appreciation (9.2% local appreciation)).
• Location reads 65/100 on livability (#206 in GA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, crime D+, amenities F.
• Madison County (rural): math 46% / reading 42% proficiency, ranked #29 of 174 in GA (top 17%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Colbert Elementary School (math 37% / reading 36%, grade F, #509 of 1,228 statewide, top 42%, 447 students, 58% FRL); Madison County Middle School (math 45% / reading 42%, grade D, #114 of 470 statewide, top 24%, 1,174 students, 58% FRL); Madison County High School (math 30% / reading 38%, grade F, #93 of 424 statewide, top 23%, 1,436 students, 49% FRL) — zoned schools at 55% FRL track the district average.
• Market conditions: 47 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 189 units permitted in Madison County in 2024 (0 in 5+ unit buildings).
• By year 2, paydown + projected appreciation supports a ~$41k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wind risk, 23% chance of damaging wind over 30y; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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?
• Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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?
• 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.