425 Pearce Ave · Wake Forest, NC 27587

$495,000

6 bd · 1.5 ba · 2,618 sqft · MultiFamily public records · 63 Days on market

Built 2003 0.91 ac lot ↓ 55% since listing

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Why this score? — see what drove the D 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 +12.2/30.0
• ARV discount +7.5/15.0
• Schools +4.9/10.0
• Livability +4.2/5.0
• DSCR +3.6/10.0
• 1% rule +2.8/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 2 units. confirmed

Listing remarks

Sold together with 417 Pearce Ave MLS#'s 10142424 and this MLS# 10142426 For a total of $960,000. Exceptional investment opportunity in the heart of downtown Wake Forest. This offering includes two fully rented duplexes sold together, located just a couple of blocks from the vibrant town center. Zoned UR, the property presents future expansion or redevelopment potential while generating immediate income. A total of almost 1 1/2 acres across both parcels. Each duplex features spacious 3-bedroom, 2-full-bath units, thoughtfully designed with two bedrooms on the main level, appealing to a wide range of tenants. This duplex is situated on a nearly 1 acre lot. The property provides rare space

Key facts

• Zoning advantages
• Nearly 1 acre lot
• 0.91 acre lot

Tags

• FULLY RENTED DUPLEXES
• FUTURE EXPANSION POTENTIAL
• NEARLY 1 ACRE LOT
• STRONG RENTAL PERFORMANCE
• ZONING ADVANTAGES

What this means for you Summary

Snapshot

• This is a 2 × 3-bed/2.0-bath units multifamily listed at $495k.

Deal economics

• At list price, monthly cash flow is $-97 ($-1k/yr) — negative. Per door: $-48/mo.
• To cash-flow at today's rent, offer at most $478k (3.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $386k (22.0% below list).
• Recommended offer: $386k (22.0% below list) — sets the bar for 1% rule.
• Cap rate 6.1% vs local median 2.8% in Wake Forest — 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.

Location & tenants

• Location reads 84/100 on livability (#6 in NC, #818 nationally) — a professional / high-income tenant draw. Strengths: employment A+, housing A+, crime A-; Watch: amenities C-.
• 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: Heritage Middle (math 65% / reading 75%, grade A, #19 of 475 statewide, top 4%, 997 students, 14% FRL); Wake Forest High School (math 61% / reading 71%, grade B, #154 of 535 statewide, top 29%, 2,101 students, 27% FRL).
• Zoned-school proficiency averages 68% at this address vs 56% district-wide (+12 pts) — the actual schools serving this property are materially stronger than the Wake County Schools average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents flat; 1084 active listings in the ZIP; high-income renter base; 15,249 units permitted in Wake County in 2024 (5,568 in 5+ unit buildings).
• This rent runs 35% of the median local income ($134k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Wake County population projected at +51% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 63 days — a 6% lower offer ($465k) is reasonable based on typical stale-listing flexibility.
• 2 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.

Risks & watch-outs

• Climate carrying-cost: major wind risk, 53% 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 $386,200 (22.0% below list)

Questions for the listing agent

1. 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?
2. It's been on market 63 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
3. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
4. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
5. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. Schools are A-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?
8. 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?
9. 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.
10. 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.
11. 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.

Investment metrics

• 1% rule: 0.78% ✗
• Cap rate: 6.06%
• Cash-on-cash: -0.84%
• DSCR: 0.96
• GRM: 10.7

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: -20.8%
• Equity multiple: 0.29×
• Total profit: $-97,790
• Equity at exit: $73,806

10-year hold

• IRR: -22.1%
• Equity multiple: 0.01×
• Total profit: $-137,260
• Equity at exit: $42,799

Cash invested: $138,600 (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 27587

• Home prices YoY: -30.3%
• Rents YoY: 0.0%
• Active inventory: 1084
• Price-to-rent: 21.4×

Monthly cashflow live

• Estimated rent: $3,862 high
• Mortgage (P&I): −$2,596
• Tax from tax record: −$345 /mo · $4,146/yr
• Insurance: −$206
• HOA: −$0
• Vacancy / Maint / Mgmt: −$811
• Net cashflow: $-97

Break-even live

Break-even rent $3,984

Max offer price $477,938

Occupancy floor 98%

2-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 2× units	3	2	$3,862
Total (2 units)			$3,862

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: $123,750
• Closing costs: $14,850
• Reserves months: —
• Total cash needed: —

Listing history 4 events

1. 2026-03-25
   status Pending
2. 2026-01-21
   listed $495,000 Active
3. 2024-09-19
   historical
4. 2024-09-09
   listed $1,100,000 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: $4,146 · $345/mo
• Projected year-2 tax: $4,146 · $345/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ 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 6/10 Major 7 d/yr ≥106°F today · 17 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 53% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $46,344
• − Mortgage interest: −$27,728
• − Property taxes: −$4,146
• − Insurance: −$2,475
• − Repairs & maintenance: −$3,708
• − Management: −$3,708
• − Depreciation: −$14,400
• Taxable loss: −$9,820
• Est. tax savings @ 24.0%: +$2,357
• After-tax cash flow: $1,198/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: Wake County Schools
• NCES district ID: 3704720
• Math proficiency: 52% ▲ 2.00%
• Reading proficiency: 60% ▲ 4.00%
• Median HH income: $67,509
• Composite: 49.41/100
• National rank: #2010
• State rank: #35 of 178 in NC

Livability — Wake Forest

• Score: 84/100
• State rank: #6
• US rank: #818

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Wake Forest, NC
• County: Wake County · 1,216,256 people
• City population: 82,886
• Metro: Raleigh-Cary, NC
• Population (ZIP): 82,886
• Household income: $133,743
• Rent vs Own: 19.0% rent · 81.0% own
• Severe rent burden: 1068.0

Population outlook (Wake County) Hauer SSP2

• Today (2025): 1,293,152 people
• By 2030: 1,428,223 · +10.4%
• By 2040: 1,698,188 · +31.3%
• By 2050: 1,955,807 · +51.2%
• By 2075: 2,520,273 · +94.9%
• By 2100: 2,893,335 · +123.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (69%)
• Race & ethnicity: White 69% Black 16% Hispanic / Latino 8% Two or more races 7% Asian 2%
• Hispanic origin (detail): Mexican 3% Puerto Rican 2%
• Common ancestry: Slovak 3% Romanian 3% Lithuanian 2%
• Foreign-born: 7% · Canada, South Korea, Jamaica
• Languages at home: 91% English-only · Spanish 4% Other Indo-European 1% Korean 1%

Political lean MEDSL · Wake

• 2024 margin: Strong D (+25.5) · D 61.9% · R 36.4% · Other 1.7%
• 2008→2024 swing: +11.1pp toward D · 2008: 14.4pp · 2024: 25.5pp
• All cycles: 2024: D+25.5 2020: D+26.4 2016: D+20.5 2012: D+10.2 2008: D+14.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -96.50%
• Current HPI: 222.174
• Rent YoY: ▬ 0.00%
• Metro: Raleigh-Cary, NC
• 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

-55.0% since first listed

4 events — show timeline

• 2026-03-25 Pending — TMLS
• 2026-01-21 Listed $495,000 TMLS
• 2024-09-19 Listing Removed — TMLS
• 2024-09-09 Listed $1,100,000 TMLS

Property tax history

+4.7%/yr

Latest (2025): $4,146 · +0.4% YoY. Source: county tax records.