850 Athens Dr

Raleigh, NC 27606

$639,000D

9 bd · 3.0 ba · 2,720 sqft · Built 1965 · MultiFamily · Active · 34 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,037/mo
• Mortgage (P&I): −$3,351
• Tax + insurance: −$580
• HOA: −$0
• Vac / Maint / Mgmt: −$1,058
• Net cashflow: $48/mo
• Annual: $576/yr
• Cap rate: 6.38%
• Cash-on-cash: 0.32%
• DSCR: 1.01
• 1% rule: 0.79%
• Cash to close: $178,920

Investor read

• This is a 3 × 3-bed/?-bath units multifamily listed at $639k.
• At list price, monthly cash flow is $48 ($576/yr) — positive. Per door: $16/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $504k (21.2% below list).
• It's been on market 34 days — a 3% lower offer ($620k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $504k (21.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#10 in NC, #1,028 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+; Watch: crime F.
• Wake County Schools (suburban): math 52% / reading 60% proficiency, ranked #35 of 178 in NC (top 20%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Farmington Woods Elementary (math 52% / reading 59%, grade C, #293 of 1,410 statewide, top 21%, 623 students, 34% FRL); Martin Middle (math 53% / reading 66%, grade B, #48 of 475 statewide, top 11%, 958 students, 28% FRL); Athens Drive High (math 65% / reading 69%, grade B, #142 of 535 statewide, top 28%, 2,062 students, 45% FRL).
• Market conditions: Rents rising (+1.9%/yr); 235 active listings in the ZIP; solid renter incomes; 15,249 units permitted in Wake County in 2024 (5,568 in 5+ unit buildings).
• Wake County population projected at +51% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $320k; list at $639k implies a 100% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 62% 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 6.4% vs local median 2.7% in Raleigh — 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 $5,037/mo this rent would consume 77% of the median local household income ($78k/yr) (locally 3612% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 34 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• Crime grade is F 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?
• 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?