3514 Diesel Dr

Denver, NC 28092

$125,000C+

3 bd · 1.0 ba · 924 sqft · Built 1987 · Manufactured · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,422/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$82
• HOA: −$0
• Vac / Maint / Mgmt: −$299
• Net cashflow: $386/mo
• Annual: $4,627/yr
• Cap rate: 9.99%
• Cash-on-cash: 13.22%
• DSCR: 1.59
• 1% rule: 1.14%
• Cash to close: $35,000

Investor read

• This is a 3-bed/1.0-bath manufactured listed at $125k.
• At list price, monthly cash flow is $386 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $125k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $864 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#255 in NC) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing B+; Watch: employment D, amenities F, commute F.
• Lincoln County Schools (rural): math 57% / reading 55% proficiency, ranked #42 of 178 in NC (top 24%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Pumpkin Center Primary (306 students, 46% FRL); North Lincoln High (math 75% / reading 74%, grade B+, #92 of 535 statewide, top 18%, 1,079 students, 27% FRL) — zoned schools at 36% FRL track the district average.
• Zoned-school proficiency averages 74% at this address vs 56% district-wide (+18 pts) — the actual schools serving this property are materially stronger than the Lincoln County Schools average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents soft (-0.6%/yr); 290 active listings in the ZIP; 697 units permitted in Lincoln County in 2024 (0 in 5+ unit buildings).
• Lincoln County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $31k; list at $125k implies a 303% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 10.0% vs local median 2.1% in Denver — 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.

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 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?
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.