1206 Gearwood Ave · Durham, NC 27701

$579,000

4 bd · 2.0 ba · 1,290 sqft · MultiFamily public records · 29 Days on market

Built 2025 6,098 sqft lot

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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 +16.9/30.0
• ARV discount +7.5/15.0
• DSCR +5.3/10.0
• Livability +4.0/5.0
• 1% rule +3.5/10.0
• Rent growth +3.3/5.0
• Schools +3.0/10.0
• 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: 1 unit. estimate disagrees with records

Listing remarks

The price is below recent appraised value! Experience elevated downtown living in Gearwood Park, one of Durham's up and coming intown neighborhoods. This transitional, custom-built home is stunning: statement Kitchen into Dining & Living spaces, 3-bedrooms, 2.5-bathrooms. Designed with intention and elevated style: wide-plank engineered hardwood floors, Andersen windows, custom tilework, floating vanities, a contemporary electric fireplace, solid-core doors & incredible light. The chef's Kitchen has stainless appliances, Shaker cabinets, under-cabinet lighting, Quartz countertops, vertical tile backsplash, 3 ovens and a gas cooktop. The private primary suite includes a spa-inspi

Key facts

• Quartz countertops
• Stainless appliances
• Floating vanities

Tags

• FLOATING VANITIES
• CHEF'S KITCHEN
• STAINLESS APPLIANCES
• UNDER-CABINET LIGHTING
• QUARTZ COUNTERTOPS
• VERTICAL TILE BACKSPLASH

Property features AI

Finance

• Other: Lot dimensions approximately 50 x 126 x 50 x 123 (0.14 acres); Zoning: RU-5(2); No other structures on the lot
• HOA & community: No association; Community features: curbs, historical area, park, playground, street lights, suburban

Exterior

• Parking: Attached 2-car garage; Additional 2 open parking spaces (parking pad/driveway/off-street/on-street options); Direct garage access; Side-by-side parking
• Security: Private property (no common walls)
• Utilities: Public water; Public sewer; Electricity connected; Natural gas connected; Sewer connected; Water connected; Cable available; Phone available
• Home design: Single-family house, site-built; Two levels; Entry from front, back and garage; Faces west; New construction
• Construction: HardiPlank-type and vertical siding; Architectural shingle roof; Foundation: block, brick/mortar, concrete perimeter; Built as a custom build
• Exterior features: Private yard; Deck; Front porch; Rain gutters; Cleared vegetation; No pool

Interior

• Kitchen: Eat-in kitchen; Gas cooktop; Electric oven; Built-in electric oven; Microwave; Dishwasher; ENERGY STAR qualified dishwasher; Refrigerator; Plumbed for ice maker; Stainless steel appliances; Quartz counters
• Bedrooms: 3 bedrooms
• Flooring: Luxury vinyl plank
• Bathrooms: 2 full bathrooms; 1 half bathroom
• Heating & cooling: Central forced air heating (natural gas); Gas pack; Ceiling fans; Central air conditioning; Electric cooling; Smart thermostat; Gas pack cooling option
• Interior features: Bathtub/shower combination; Double vanity; Separate shower; Ceiling fans; Open floorplan; High ceilings; Recessed lighting; Quartz countertops; Walk-in closet(s); Walk-in shower; Smart thermostat; Instant hot water
• Laundry & utility: Laundry room on upper level with sink; Inside laundry; Electric dryer hookup

🏗️ New construction. Builder plan / spec listing (the home may be to-be-built); metrics use comparable previous sales.

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath multifamily listed at $579k.

Deal economics

• At list price, monthly cash flow is $387 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $490k (15.4% below list).
• Recommended offer: $490k (15.4% below list) — sets the bar for 1% rule.
• Cap rate 7.1% vs local median 3.0% in Durham — 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 81/100 on livability (#15 in NC, #1,411 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+; Watch: crime F.
• Durham Public Schools (urban): math 29% / reading 39% proficiency, ranked #132 of 178 in NC (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Riverside High (math 49% / reading 42%, grade D-, #347 of 535 statewide, top 65%, 1,812 students, 51% FRL).
• Market conditions: Rents rising (+3.2%/yr); 197 active listings in the ZIP; 27 comparable units currently listed for rent nearby; rentals at typical pace (median 14d on market — plan ~3-4 weeks tenant-placement turnaround); 2,905 units permitted in Durham County in 2024 (955 in 5+ unit buildings).
• At $4,901/mo this rent would consume 84% of the median local household income ($70k/yr) (locally 1402% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Durham County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 29 days — a 2% lower offer ($570k) is reasonable based on typical stale-listing flexibility.
• 7 sale attempts since 22y 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.
• Current owner paid $76k; list at $579k implies a 662% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $490,100 (15.4% below list)

Questions for the listing agent

1. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
2. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
3. 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?
4. 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?
5. 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.
6. 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.
7. 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: 0.85% ✗
• Cap rate: 7.09%
• Cash-on-cash: 2.86%
• DSCR: 1.13
• GRM: 9.8

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 3.25% rent growth · sell at horizon

5-year hold

• IRR: -11.6%
• Equity multiple: 0.58×
• Total profit: $-68,202
• Equity at exit: $86,331

10-year hold

• IRR: -2.1%
• Equity multiple: 0.85×
• Total profit: $-23,568
• Equity at exit: $50,061

Cash invested: $162,120 (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 27701

• Rents YoY: 3.2%
• Active inventory: 197
• Price-to-rent: 19.7×

Monthly cashflow live

• Estimated rent: $4,901 high
• Mortgage (P&I): −$3,036
• Tax from tax record: −$208 /mo · $2,490/yr
• Insurance: −$241
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,029
• Net cashflow: $387

Break-even live

Break-even rent $4,412

Max offer price $579,000

Occupancy floor 87%

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

Units	Beds	Baths	Est. rent
▸ 2× units	3	2	$4,902
Total (2 units)			$4,901

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: $144,750
• Closing costs: $17,370
• Reserves months: —
• Total cash needed: —

Rent comps 27 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1312 N Alston Ave Durham, NC	4.0	2.5	1660	$2,350	$1.42	23d	1	0.13mi
1136 Drew St Unit A Durham, NC	3.0	2.5	1390	$1,550	$1.12	14d	1	0.48mi
603 N Elm St Unit A Durham, NC	3.0	2.0	1200	$1,495	$1.25	23d	1	0.54mi
318 W Corporation St Durham, NC	3.0	1.0–2.0	900	$3,750	$4.17	14d	55	0.67mi
500 E Main St Durham, NC	3.0	1.0–2.0	1002	$3,556	$3.55	14d	40	0.70mi
1516 London Cir Durham, NC	3.0	1.0	1118	$1,650	$1.48	23d	1	0.71mi
1602 Juniper St Unit B Durham, NC	4.0	3.0	1754	$2,800	$1.60	23d	1	0.82mi
1602 Juniper St Unit A Durham, NC	3.0	2.5	1688	$2,400	$1.42	23d	1	0.82mi
406 N Hyde Park Ave Durham, NC	3.0	1.0	1160	$1,730	$1.49	21d	1	0.82mi
701 Washington St Durham, NC	1.0–3.0	1.0–2.0	996	$5,241	$5.26	14d	214	0.90mi
441 S Dillard St Durham, NC	1.0–3.0	1.0–2.5	1153	$3,389	$2.94	14d	21	0.91mi
504 E Pettigrew St Durham, NC	3.0	1.0–2.0	1092	$2,528	$2.32	21d	30	0.92mi
510 E Pettigrew St Durham, NC	3.0	1.0–2.0	996	$3,130	$3.14	14d	29	0.92mi
511 S Mangum St Durham, NC	3.0	1.0–2.0	1159	$4,115	$3.55	14d	29	0.99mi
1809 E Main St Durham, NC	3.0	1.0	1200	$1,700	$1.42	14d	1	1.07mi
214 N Guthrie Ave Unit A Durham, NC	3.0	2.5	1586	$1,700	$1.07	14d	1	1.08mi
605 W Main St Durham, NC	3.0	1.0–2.0	977	$3,628	$3.71	14d	48	1.09mi
900 Dacian Ave Unit B Durham, NC	3.0	2.0	1550	$2,595	$1.67	23d	1	1.14mi
1104 Raynor St Durham, NC	4.0	2.0	1388	$1,720	$1.24	14d	1	1.16mi
615 N Hardee St Durham, NC	3.0	2.0	1250	$1,690	$1.35	14d	1	1.22mi
701 Grant St Durham, NC	3.0	2.0	1145	$1,850	$1.62	23d	1	1.23mi
1911 Fidelity Dr Durham, NC	3.0	2.0	1209	$1,815	$1.50	23d	1	1.27mi
1237 Naples Pl Durham, NC	1.0–4.0	1.0–2.0	995	$1,900	$1.91	11d	1	1.27mi
514 E Umstead St Durham, NC	3.0	2.0	1134	$1,625	$1.43	23d	1	1.31mi
2408 Hart St Durham, NC	3.0	1.0	960	$1,445	$1.51	23d	1	1.38mi
910 Scout Dr Durham, NC	3.0	2.5	1508	$4,000	$2.65	23d	1	1.41mi
1000 Linwood Ave Durham, NC	3.0	2.0	1150	$2,400	$2.09	14d	1	1.43mi

Listing history 37 events

1. 2026-06-10
   days on market $579,000 Active 29 DOM
2. 2026-06-09
   days on market $579,000 Active 28 DOM
3. 2026-06-08
   days on market $579,000 Active 27 DOM
4. 2026-06-07
   days on market $579,000 Active 26 DOM
5. 2026-06-05
   pricedays on market $579,000 Active 23 DOM
6. 2026-06-03
   days on market $584,900 Active 22 DOM
7. 2026-06-02
   days on market $584,900 Active 21 DOM
8. 2026-06-01
   days on market $584,900 Active 20 DOM
9. 2026-05-31
   days on market $584,900 Active 19 DOM
10. 2026-05-30
    days on market $584,900 Active 18 DOM
11. 2026-05-21
    price $584,900
12. 2026-05-07
    listed $589,900 Active
13. 2026-03-30
    historical
14. 2026-03-26
    price $594,900
15. 2026-03-12
    price $598,890
16. 2026-03-02
    price $599,890
17. 2026-02-23
    price $624,500
18. 2026-02-11
    price $624,999
19. 2026-02-04
    price $649,000
20. 2026-01-14
    price $688,900
21. 2026-01-08
    price $698,900
22. 2026-01-07
    listed $699,000 Active
23. 2025-12-21
    historical
24. 2025-09-11
    historical
25. 2025-08-20
    listed $699,000 Active
26. 2007-09-15
    soldstatus $76,000
27. 2007-09-15
    soldstatus $76,000
28. 2007-08-21
    historical
29. 2007-08-14
    soldstatus $76,000
30. 2007-01-30
    listed $72,000
31. 2007-01-30
    listed $72,000
32. 2006-12-31
    historical
33. 2006-07-05
    listed $75,000
34. 2005-09-21
    soldstatus $516,500
35. 2005-04-23
    historical
36. 2004-11-04
    listed $96,000
37. 2001-06-27
    soldstatus $300,000

ⓘ 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: $2,490 · $208/mo
• Projected year-2 tax: $4,748 · $396/mo
• Expected delta: +$2,258/yr (+$188/mo · 90.7%)

ⓘ 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 1/10 Low
• 🌡 Heat 6/10 Major 7 d/yr ≥106°F today · 16 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% 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: $58,812
• − Mortgage interest: −$32,433
• − Property taxes: −$2,490
• − Insurance: −$2,895
• − Repairs & maintenance: −$4,705
• − Management: −$4,705
• − Depreciation: −$16,844
• Taxable loss: −$5,260
• Est. tax savings @ 24.0%: +$1,262
• After-tax cash flow: $5,903/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: Durham Public Schools
• NCES district ID: 3701260
• Math proficiency: 29% ▼ -3.00%
• Reading proficiency: 39% ▲ 2.00%
• Median HH income: $52,143
• Composite: 29.69/100
• National rank: #6457
• State rank: #132 of 178 in NC

Livability — Durham

• Score: 81/100
• State rank: #15
• US rank: #1411

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Durham, NC
• County: Durham County · 288,747 people
• City population: 288,747
• Metro: Durham-Chapel Hill, NC
• Population (ZIP): 24,793
• Household income: $69,740
• Rent vs Own: 69.8% rent · 30.2% own
• Severe rent burden: 1402.0

Population outlook (Durham County) Hauer SSP2

• Today (2025): 368,962 people
• By 2030: 402,686 · +9.1%
• By 2040: 468,677 · +27.0%
• By 2050: 531,727 · +44.1%
• By 2075: 660,446 · +79.0%
• By 2100: 739,971 · +100.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.69)
• Race & ethnicity: White 40% Black 32% Hispanic / Latino 19% Two or more races 9% Asian 3%
• Hispanic origin (detail): Mexican 9%
• Common ancestry: Romanian 2% Italian 2% Slovak 2%
• Foreign-born: 18% · Canada, Vietnam
• Languages at home: 76% English-only · Spanish 18% Other Indo-European 2% German/W. Germanic 1%

Political lean MEDSL · Durham

• 2024 margin: Solid D (+61.9) · D 80.2% · R 18.2% · Other 1.6%
• 2008→2024 swing: +10.0pp toward D · 2008: 51.9pp · 2024: 61.9pp
• All cycles: 2024: D+61.9 2020: D+62.4 2016: D+60.4 2012: D+52.7 2008: D+51.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -272.19%
• Current HPI: 347.5371
• Rent YoY: ▲ 3.25%
• Metro: Durham-Chapel Hill, 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

+95.0% since first listed

27 events — show timeline

• 2026-05-21 Price Changed $584,900 TMLS
• 2026-05-07 Listed $589,900 TMLS
• 2026-03-30 Listing Removed — TMLS
• 2026-03-26 Price Changed $594,900 TMLS
• 2026-03-12 Price Changed $598,890 TMLS
• 2026-03-02 Price Changed $599,890 TMLS
• 2026-02-23 Price Changed $624,500 TMLS
• 2026-02-11 Price Changed $624,999 TMLS
• 2026-02-04 Price Changed $649,000 TMLS
• 2026-01-14 Price Changed $688,900 TMLS
• 2026-01-08 Price Changed $698,900 TMLS
• 2026-01-07 Listed $699,000 TMLS
• 2025-12-21 Coming Soon — TMLS
• 2025-09-11 Listing Removed — TMLS
• 2025-08-20 Listed $699,000 TMLS
• 2007-09-15 Sold (MLS) $76,000 AMLSNC
• 2007-09-15 Sold (MLS) $76,000 TMLS
• 2007-08-21 Listing Removed — TMLS
• 2007-08-14 Sold (Public Records) $76,000 Public Records
• 2007-01-30 Listed $72,000 AMLSNC
• 2007-01-30 Listed $72,000 TMLS
• 2006-12-31 Listing Removed — TMLS
• 2006-07-05 Listed $75,000 TMLS
• 2005-09-21 Sold (Public Records) $516,500 Public Records
• 2005-04-23 Listing Removed — TMLS
• 2004-11-04 Listed $96,000 TMLS
• 2001-06-27 Sold (Public Records) $300,000 Public Records

Property tax history

+6.9%/yr

Latest (2025): $2,490 · +28.1% YoY. Source: county tax records.