Pearson Plan

Heron Bay, GA 30248

$383,650F

5 bd · 3.0 ba · 2,803 sqft · Built — · SingleFamily · Active · 251 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,086/mo
• Mortgage (P&I): −$2,335
• Tax + insurance: −$742
• HOA: −$0
• Vac / Maint / Mgmt: −$648
• Net cashflow: $-639/mo
• Annual: $-7,673/yr
• Cap rate: 4.57%
• Cash-on-cash: -6.15%
• DSCR: 0.73
• 1% rule: 0.69%
• Cash to close: $124,692

Investor read

• This is a 5-bed/3.0-bath single-family listed at $384k. Condition is rated good.
• At list price, monthly cash flow is $-639 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $353k (8.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $309k (19.6% below list).
• It's been on market 251 days — a 12% lower offer ($338k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $309k (19.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#159 in GA) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Henry County (rural): math 24% / reading 33% proficiency, ranked #89 of 174 in GA (top 51%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Bethlehem Elementary School (math 22% / reading 27%, grade F, #753 of 1,228 statewide, top 64%, 474 students, 53% FRL); Luella Middle School (math 12% / reading 29%, grade F, #345 of 470 statewide, top 74%, 870 students, 53% FRL); Luella High School (math 12% / reading 22%, grade F, #277 of 424 statewide, top 67%, 1,373 students, 44% FRL).
• Market conditions: Rents rising (+2.2%/yr); 732 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals leasing fast (median 6d on market — plan ~1-2 weeks tenant-placement turnaround); 43% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,989 units permitted in Henry County in 2024 (92 in 5+ unit buildings).
• Henry County population projected at +29% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• This rent runs 44% of the median local income ($84k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• 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?
• It's been on market 251 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• 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.
• 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 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.