The McGinnis Plan

Vass, NC 28394

$313,990F

4 bd · 2.5 ba · 2,372 sqft · Built — · SingleFamily · Active · 188 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,411/mo
• Mortgage (P&I): −$2,371
• Tax + insurance: −$753
• HOA: −$0
• Vac / Maint / Mgmt: −$506
• Net cashflow: $-1,220/mo
• Annual: $-14,640/yr
• Cap rate: 3.05%
• Cash-on-cash: -11.57%
• DSCR: 0.49
• 1% rule: 0.53%
• Cash to close: $126,585

Investor read

• This is a 4-bed/2.5-bath single-family listed at $314k. Condition is rated good.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative.
• To cash-flow at today's rent, offer at most $276k (12.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $241k (23.2% below list).
• It's been on market 188 days — a 12% lower offer ($276k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $241k (23.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 57/100 on livability (#593 in NC) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, 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: Vass-Lakeview Elementary (math 57% / reading 51%, grade C, #328 of 1,410 statewide, top 24%, 460 students, 42% FRL); Crain'S Creek Middle (math 37% / reading 47%, grade D-, #199 of 475 statewide, top 43%, 592 students, 51% FRL); Union Pines High (math 63% / reading 70%, grade B, #150 of 535 statewide, top 28%, 1,438 students, 34% FRL) — zoned schools at 42% FRL track the district average.
• Market conditions: 290 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 51d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 941 units permitted in Moore County in 2024 (0 in 5+ unit buildings).
• Moore County population projected at +29% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 3.1% vs local median 4.0% in Vass — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 36% of the median local income ($80k/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 188 days. Have you received any prior offers? Is the seller open to a 23% 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?
• 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.