186 Rainbow Rd · Magnolia, NC 28398

$102,000

2 bd · 1.0 ba · 736 sqft · SingleFamily public records · 28 Days on market

Built 1950 1.00 ac lot

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Why this score? — see what drove the C grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +22.1/30.0
• ARV discount +7.5/15.0
• DSCR +7.1/10.0
• Appreciation +5.3/10.0
• 1% rule +4.8/10.0
• Livability +2.8/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +2.3/10.0

Listing remarks

3-bedroom, 1-bath home situated on approximately 1 acre in Warsaw. Built in 1950, this property offers 736 square feet of living space with a rural setting and room for outdoor use. Conveniently located with access to local amenities, this property may be suitable for primary residence, rental, or investment purposes.

Key facts

• 1 acre lot
• Built 1950
• Listed 28 days

Property features AI

Exterior

• Parking: On-site parking
• Utilities: Public water supply; Water connected; Septic tank sewer
• Home design: Single-family residence; One story; Entry level is 1
• Construction: Brick and frame construction; Metal roof
• Exterior features: No patio or porch; No fencing; City street and state road frontage; Irregular lot shape; 1 acre lot; Residential zoning

Interior

• Kitchen: Electric oven; Refrigerator
• Bedrooms: 5 total rooms (includes bedrooms and living spaces)
• Flooring: Vinyl
• Bathrooms: 1 full bathroom
• Heating & cooling: Propane heating; Heat pump; Central air conditioning
• Interior features: Eat-in kitchen; Crawl space basement; Has a view
• Laundry & utility: Electric water heater

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $102k.

Deal economics

• At list price, monthly cash flow is $164 ($2k/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 $100k (2.1% below list).
• Recommended offer: $100k (2.1% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 56/100 on livability (#628 in NC) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A-; Watch: amenities F, commute F, employment F.
• Duplin County Schools (rural): math 23% / reading 32% proficiency, ranked #153 of 178 in NC (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 74% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Warsaw Elementary (math 13% / reading 25%, grade F, #1,269 of 1,410 statewide, top 91%, 799 students, 100% FRL); James Kenan High (math 27% / reading 32%, grade F, #459 of 535 statewide, top 87%, 784 students, 100% FRL) — zoned schools average 100% FRL vs 74% district-wide (25 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 43 active listings in the ZIP; 134 units permitted in Duplin County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $1k of equity ($705 loan paydown + $601 appreciation (0.6% local appreciation)).
• Duplin County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (0.6% appreciation + 3.0% rent growth), your $29k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• It's been on market 28 days — a 2% lower offer ($100k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: severe wind risk, 80% 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.

Recommended offer $99,841 (2.1% below list)

Questions for the listing agent

1. Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. 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.
5. 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.
6. 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.

Investment metrics

• 1% rule: 0.98% ✗
• Cap rate: 8.23%
• Cash-on-cash: 6.91%
• DSCR: 1.31
• GRM: 8.5

CMA / ARV

No comps found within radius.

Projected returns pro-forma

0.59% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 7.3%
• Equity multiple: 1.36×
• Total profit: $10,313
• Equity at exit: $32,658

10-year hold

• IRR: 11.8%
• Equity multiple: 2.37×
• Total profit: $39,020
• Equity at exit: $41,774

Cash invested: $28,560 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 85 Strongly Landlord-Friendly
• State North Carolina: 85 Strongly Landlord-Friendly · R+3
• County: — inherits STATE
• City: — inherits STATE

10-day notice; preempted; landlord-favorable but court speed varies.

Methodology + full state rankings →

ZIP-level market 28398

• Home prices YoY: 0.3%
• Active inventory: 43
• Price-to-rent: 8.5×

Monthly cashflow live

• Estimated rent: $998 medium
• Mortgage (P&I): −$535
• Tax from tax record: −$47 /mo · $563/yr
• Insurance: −$42
• HOA: −$0
• Vacancy / Maint / Mgmt: −$210
• Net cashflow: $164

Break-even live

Break-even rent $790

Max offer price $102,000

Occupancy floor 79%

Sensitivity live

Price	-10% $222	-5% $193	+0% $164	+5% $136	+10% $107
Rent	-10% $86	-5% $125	+0% $164	+5% $204	+10% $243
Rate	-1.0pp $216	-0.5pp $190	base $164	+0.5pp $138	+1.0pp $111

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $25,500
• Closing costs: $3,060
• Reserves months: —
• Total cash needed: —

Listing history 8 events

1. 2026-06-07
   statusdays on market $102,000 Pending 28 DOM
2. 2026-06-05
   days on market $102,000 Active 27 DOM
3. 2026-06-03
   pricedays on market $102,000 Active 26 DOM
4. 2026-06-02
   days on market $92,000 Active 25 DOM
5. 2026-06-01
   days on market $92,000 Active 24 DOM
6. 2026-05-31
   days on market $92,000 Active 23 DOM
7. 2026-05-30
   days on market $92,000 Active 22 DOM
8. 2026-05-08
   listed $92,000 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast NC · Resets to sale price

• Current annual tax: $563 · $47/mo
• Projected year-2 tax: $836 · $70/mo
• Expected delta: +$274/yr (+$23/mo · 48.6%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 7/10 Severe 7 d/yr ≥107°F today · 17 d/yr by 30 yrs out
• 💨 Wind 8/10 Severe 80% chance of damaging wind over 30 yrs
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $11,981
• − Mortgage interest: −$5,714
• − Property taxes: −$563
• − Insurance: −$510
• − Repairs & maintenance: −$958
• − Management: −$958
• − Depreciation: −$2,967
• Taxable income: $310
• Est. tax owed @ 24.0%: −$74
• After-tax cash flow: $1,899/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Duplin County Schools
• NCES district ID: 3701200
• Math proficiency: 23% ▼ -5.00%
• Reading proficiency: 32% ▼ -1.00%
• Median HH income: $34,900
• Composite: 22.66/100
• National rank: #8052
• State rank: #153 of 178 in NC

Livability — Magnolia

• Score: 56/100
• State rank: #628
• US rank: #22864

Category grades

Amenities F Commute F Cost of living A+ Crime A- Employment F Housing C Health & safety F User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Population (ZIP): 6,084

Population outlook (Duplin County) Hauer SSP2

• Today (2025): 57,701 people
• By 2030: 56,333 · -2.4%
• By 2040: 52,736 · -8.6%
• By 2050: 48,426 · -16.1%
• By 2075: 36,339 · -37.0%
• By 2100: 23,866 · -58.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.66)
• Race & ethnicity: Black 46% White 27% Hispanic / Latino 23% Two or more races 7% Native American 1%
• Hispanic origin (detail): Mexican 17% Puerto Rican 3%
• Common ancestry: Hispanic 5% Lithuanian 1%
• Foreign-born: 18% · Canada
• Languages at home: 71% English-only · Spanish 20% French/Haitian/Cajun 8%

Political lean MEDSL · Duplin

• 2024 margin: Strong R (+28.9) · D 35.2% · R 64.2%
• 2008→2024 swing: -19.5pp toward R · 2008: -9.4pp · 2024: -28.9pp
• All cycles: 2024: R+28.9 2020: R+22.1 2016: R+19.2 2012: R+11.8 2008: R+9.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 0.59%
• Current HPI: 219.5971
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 3.28%
• F500 in state: 26

Industry mix (Fortune 500 HQ in NC)

Industry	F500 HQs	Revenue
▸Financial Services	2	$213B
▸Retail	2	$95B
▸Industrial Conglomerate	1	$38B
▸Metals / Steel	1	$35B
▸Utilities	1	$30B
▸Industrial Machinery	1	$19B

Price history

1 event — show timeline

• 2026-05-08 Listed $92,000 Hive MLS

Property tax history

+6.5%/yr

Latest (2025): $563 · +54.0% YoY. Source: county tax records.