6140 Michelle Ln

Chattahoochee Hills, GA 30135

$239,900D

3 bd · 2.0 ba · 1,830 sqft · Built 1973 · SingleFamily · Active · 128 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,952/mo
• Mortgage (P&I): −$1,258
• Tax + insurance: −$354
• HOA: −$0
• Vac / Maint / Mgmt: −$410
• Net cashflow: $-71/mo
• Annual: $-849/yr
• Cap rate: 5.94%
• Cash-on-cash: -1.26%
• DSCR: 0.94
• 1% rule: 0.81%
• Cash to close: $67,172

Investor read

• This is a 3-bed/2.0-bath single-family listed at $240k.
• At list price, monthly cash flow is $-71 ($-849/yr) — negative.
• To cash-flow at today's rent, offer at most $227k (5.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $195k (18.7% below list).
• It's been on market 128 days — a 12% lower offer ($211k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $195k (18.7% 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 $7k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#338 in GA) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, cost of living A; Watch: amenities F, commute F, health & safety F.
• Douglas County (suburban): math 23% / reading 35% proficiency, ranked #92 of 174 in GA (top 53%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Bill Arp Elementary School (math 30% / reading 31%, grade F, #620 of 1,228 statewide, top 51%, 610 students, 72% FRL); Fairplay Middle School (math 25% / reading 54%, grade F, #147 of 470 statewide, top 33%, 537 students, 36% FRL); Chapel Hill High School (math 16% / reading 32%, grade F, #203 of 424 statewide, top 48%, 1,609 students, 48% FRL) — zoned schools at 52% FRL track the district average.
• Market conditions: Rents flat; 610 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 595 units permitted in Douglas County in 2024 (72 in 5+ unit buildings).
• Douglas County population projected at +35% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 8 sale attempts since 15y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $30k; list at $240k implies a 700% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.9% vs local median 1.4% in Chattahoochee Hills — 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

• 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 128 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.