32 UNIT MUTLIPL Multiple

Experiment, GA 30223

$2,250,000B-

None bd · None ba · — sqft · Built 1977 · MultiFamily · Under Contract · 240 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $31,878/mo
• Mortgage (P&I): −$11,799
• Tax + insurance: −$3,750
• HOA: −$0
• Vac / Maint / Mgmt: −$6,694
• Net cashflow: $9,634/mo
• Annual: $115,613/yr
• Cap rate: 11.43%
• Cash-on-cash: 18.35%
• DSCR: 1.82
• 1% rule: 1.42%
• Cash to close: $630,000

Investor read

• This is a multifamily listed at $2.25M. Condition is rated poor.
• At list price, monthly cash flow is $10k ($116k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($32k rent vs $2.25M).
• It's been on market 240 days — a 12% lower offer ($1.98M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.98M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $16k of loan paydown is wiped out by about $68k of value loss. Plan a longer hold.
• Location reads 56/100 on livability (#500 in GA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A-, housing A-; Watch: schools F, amenities F, commute F.
• Griffin-Spalding County (suburban): math 13% / reading 19% proficiency, ranked #151 of 174 in GA (top 87%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+3.3%/yr); 441 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); 342 units permitted in Spalding County in 2024 (0 in 5+ unit buildings).
• Spalding County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.3% rent growth), your $630k cash investment doubles in ~7 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 39% chance of damaging wind over 30y; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.4% vs local median 4.2% in Experiment — 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 $31,878/mo this rent would consume 648% of the median local household income ($59k/yr) (locally 1297% 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 240 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Boarded-up windows — Security and safety risk
• Major: Weathered siding — Structural integrity and aesthetic
• Major: Overgrown vegetation — Safety and aesthetics