104 Nickel Plate Dr

Mocksville, NC 27028

$299,000D

4 bd · 2.5 ba · 2,164 sqft · Built 2025 · SingleFamily · Pending · 90 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,613/mo
• Mortgage (P&I): −$1,568
• Tax + insurance: −$498
• HOA: −$80
• Vac / Maint / Mgmt: −$549
• Net cashflow: $-82/mo
• Annual: $-982/yr
• Cap rate: 5.96%
• Cash-on-cash: -1.17%
• DSCR: 0.95
• 1% rule: 0.87%
• Cash to close: $83,720

Investor read

• This is a 4-bed/2.5-bath single-family listed at $299k.
• At list price, monthly cash flow is $-82 ($-982/yr) — negative.
• To cash-flow at today's rent, offer at most $287k (4.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $261k (12.6% below list).
• It's been on market 90 days — a 6% lower offer ($281k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $261k (12.6% 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 $9k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#68 in NC) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime C-, employment D, amenities F.
• Davie County Schools (rural): math 51% / reading 52% proficiency, ranked #57 of 178 in NC (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Cornatzer Elementary (math 57% / reading 52%, grade C, #302 of 1,410 statewide, top 23%, 350 students, 58% FRL); William Ellis Middle (math 48% / reading 59%, grade C+, #87 of 475 statewide, top 19%, 452 students, 31% FRL); Davie County High (math 62% / reading 62%, grade B-, #184 of 535 statewide, top 37%, 1,770 students, 42% FRL).
• Market conditions: 221 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 250 units permitted in Davie County in 2024 (65 in 5+ unit buildings).
• Davie County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts; this cycle's ask has dropped $29k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 6.0% vs local median 4.0% in Mocksville — 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.
• At $2,613/mo this rent would consume 45% of the median local household income ($69k/yr) (locally 512% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 90 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.