224 Peach St

Elizabeth City, NC 27976

$289,990C-

3 bd · 2.5 ba · 1,520 sqft · Built 2026 · Townhouse · Under Contract · 29 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,937/mo
• Mortgage (P&I): −$1,521
• Tax + insurance: −$910
• HOA: −$100
• Vac / Maint / Mgmt: −$617
• Net cashflow: $-210/mo
• Annual: $-2,521/yr
• Cap rate: 7.19%
• Cash-on-cash: 3.20%
• DSCR: 1.14
• 1% rule: 1.01%
• Cash to close: $81,197

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $290k. Condition is rated excellent.
• At list price, monthly cash flow is $-210 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $260k (10.5% below list).
• Meets the 1% rule at list price ($3k rent vs $290k).
• It's been on market 29 days — a 2% lower offer ($286k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $260k (10.5% below list) — sets the bar for cash-flow.
• In year one you build about $869 of equity ($2k loan paydown + $-1k appreciation (-0.4% local appreciation)).
• Location reads 71/100 on livability (#119 in NC) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime D+, commute F, employment F.
• Elizabeth City-Pasquotank Public Schools (rural): math 21% / reading 34% proficiency, ranked #152 of 178 in NC (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Pasquotank Elementary (math 12% / reading 32%, grade F, #1,190 of 1,410 statewide, top 86%, 270 students, 98% FRL); River Road Middle (math 18% / reading 37%, grade F, #368 of 475 statewide, top 78%, 463 students, 99% FRL); Northeastern High (math 37% / reading 42%, grade F, #393 of 535 statewide, top 75%, 701 students, 100% FRL) — zoned schools average 99% FRL vs 56% district-wide (42 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 86 active listings in the ZIP; 153 units permitted in Pasquotank County in 2024 (0 in 5+ unit buildings).
• Pasquotank County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 6 sale attempts 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.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 99% 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.
• Cap rate 7.2% vs local median 2.9% in Elizabeth City — 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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-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.