156 S Johnson St

Newborn, GA 30056

$1,149,000D+

17 bd · 2.0 ba · 1,836 sqft · Built 1999 · MultiFamily · Active · 19 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,400/mo
• Mortgage (P&I): −$6,025
• Tax + insurance: −$1,087
• HOA: −$0
• Vac / Maint / Mgmt: −$2,184
• Net cashflow: $1,103/mo
• Annual: $13,239/yr
• Cap rate: 7.45%
• Cash-on-cash: 4.12%
• DSCR: 1.18
• 1% rule: 0.91%
• Cash to close: $321,720

Investor read

• This is a 17-bed/2.0-bath multifamily listed at $1.15M.
• At list price, monthly cash flow is $1k ($13k/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 $1.04M (9.5% below list).
• It's been on market 19 days — a 2% lower offer ($1.13M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.04M (9.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-2.2%/yr); year-one equity from $8k of loan paydown is wiped out by about $26k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#399 in GA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime C-, amenities F, commute F.
• Newton County (suburban): math 17% / reading 26% proficiency, ranked #137 of 174 in GA (top 79%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Mansfield Elementary School (math 47% / reading 42%, grade F, #336 of 1,228 statewide, top 29%, 391 students, 38% FRL); Indian Creek Middle School (math 18% / reading 30%, grade F, #311 of 470 statewide, top 68%, 814 students, 85% FRL); Eastside High School (math 7% / reading 17%, grade F, #342 of 424 statewide, top 81%, 1,621 students, 46% FRL) — zoned schools at 56% FRL track the district average.
• Market conditions: 16 active listings in the ZIP; 1,480 units permitted in Newton County in 2024 (702 in 5+ unit buildings).
• Newton County population projected at +23% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 6 sale attempts since 2y 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 $460k; list at $1.15M implies a 150% 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→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 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?
• 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.