2901 Lenox Way NE #902

Atlanta, GA 30324

$175,000D

2 bd · 1.0 ba · 1,021 sqft · Built 1980 · Townhouse · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,001/mo
• Mortgage (P&I): −$918
• Tax + insurance: −$292
• HOA: −$679
• Vac / Maint / Mgmt: −$420
• Net cashflow: $-307/mo
• Annual: $-3,687/yr
• Cap rate: 4.19%
• Cash-on-cash: -7.53%
• DSCR: 0.67
• 1% rule: 1.14%
• Cash to close: $49,000

Investor read

• This is a 2-bed/1.0-bath townhouse listed at $175k. Condition is rated good.
• At list price, monthly cash flow is $-307 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $131k (25.4% below list).
• Meets the 1% rule at list price ($2k rent vs $175k).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $131k (25.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#6 in GA, #919 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+; Watch: cost of living C-.
• Atlanta Public Schools (urban): math 28% / reading 35% proficiency, ranked #80 of 174 in GA (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 71% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Sara Rawson Smith Elementary School (math 57% / reading 59%, grade C+, #143 of 1,228 statewide, top 12%, 865 students, 26% FRL); Willis A. Sutton Middle School (math 36% / reading 55%, grade D+, #97 of 470 statewide, top 22%, 1,548 students, 34% FRL); North Atlanta High School (math 27% / reading 17%, grade F, #213 of 424 statewide, top 51%, 2,316 students, 24% FRL) — zoned schools average 28% FRL vs 71% district-wide (43 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: HOA is 34% of rent.
• Market conditions: Rents flat; 393 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 54d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 58% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 11,565 units permitted in Fulton County in 2024 (8,159 in 5+ unit buildings).
• Fulton County population projected at +38% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.2% vs local median 3.2% in Atlanta — 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

• 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.