The Maddux II Plan

Cartersville, GA 30120

$255,990F

3 bd · 2.5 ba · 1,725 sqft · Built — · SingleFamily · Active · 369 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,047/mo
• Mortgage (P&I): −$1,677
• Tax + insurance: −$533
• HOA: −$0
• Vac / Maint / Mgmt: −$430
• Net cashflow: $-593/mo
• Annual: $-7,112/yr
• Cap rate: 4.07%
• Cash-on-cash: -7.94%
• DSCR: 0.65
• 1% rule: 0.64%
• Cash to close: $89,536

Investor read

• This is a 3-bed/2.5-bath single-family listed at $256k. Condition is rated good.
• At list price, monthly cash flow is $-593 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $234k (8.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $205k (20.0% below list).
• It's been on market 369 days — a 12% lower offer ($225k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $205k (20.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#43 in GA, #4,800 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, amenities A; Watch: commute F.
• Bartow County (rural): math 33% / reading 34% proficiency, ranked #70 of 174 in GA (top 40%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Euharlee Elementary School (math 44% / reading 45%, grade F, #336 of 1,228 statewide, top 29%, 540 students, 49% FRL); Woodland Middle School At Euharlee (math 27% / reading 44%, grade F, #185 of 470 statewide, top 40%, 684 students, 52% FRL); Woodland High School (math 11% / reading 36%, grade F, #206 of 424 statewide, top 48%, 1,451 students, 48% FRL) — zoned schools at 49% FRL track the district average.
• Market conditions: Rents soft (-0.2%/yr); 980 active listings in the ZIP; 17 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 47% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,618 units permitted in Bartow County in 2024 (265 in 5+ unit buildings).

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 369 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.
• 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?
• 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.