96 Rebel Dr

Hot Springs, NC 28743

$125,600C+

3 bd · 1.0 ba · 1,280 sqft · Built 1985 · SingleFamily · Active · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,251/mo
• Mortgage (P&I): −$659
• Tax + insurance: −$93
• HOA: −$0
• Vac / Maint / Mgmt: −$263
• Net cashflow: $237/mo
• Annual: $2,840/yr
• Cap rate: 8.55%
• Cash-on-cash: 8.08%
• DSCR: 1.36
• 1% rule: 1.00%
• Cash to close: $35,168

Investor read

• This is a 3-bed/1.0-bath single-family listed at $126k.
• At list price, monthly cash flow is $237 ($3k/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 $125k (0.4% below list).
• It's been on market 24 days — a 2% lower offer ($124k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $124k (1.5% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($868 loan paydown + $615 appreciation (0.5% local appreciation)).
• Location reads 66/100 on livability (#288 in NC) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A-; Watch: schools D+, crime D, amenities F.
• Madison County Schools (rural): math 51% / reading 56% proficiency, ranked #55 of 178 in NC (top 31%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 41 active listings in the ZIP; 209 units permitted in Madison County in 2024 (5 in 5+ unit buildings).
• At projected returns (0.5% appreciation + 3.0% rent growth), your $35k cash investment doubles in ~7 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 8→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.6% vs local median 0.6% in Hot Springs — 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.

Questions for listing agent

• 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?
• 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 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.