408 Sherwood Dr · Sanford, NC 27330

$235,000

3 bd · 2.0 ba · 1,484 sqft · SingleFamily public records · 37 Days on market

Built 1960 0.62 ac lot Est $237k · at est. ↓ 19% since listing

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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 +13.5/30.0
• ARV discount +8.0/15.0
• DSCR +4.1/10.0
• Rent growth +3.7/5.0
• Livability +3.6/5.0
• Schools +3.0/10.0
• 1% rule +2.9/10.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Welcome home to this charming brick ranch nestled on a spacious 2/3-acre lot in the highly desirable Forest Hills neighborhood of Northwest Sanford. Known for its rolling hills, mature trees, and generous space between homes, this established community offers both privacy and timeless appeal. Inside, you’ll find original hardwood floors complemented by stylish LVP flooring, creating a warm and inviting atmosphere throughout. The home features a cozy country kitchen, a formal dining and living room perfect for gatherings, and a comfortable family room highlighted by large picture windows that bring in natural light and showcase the beautiful surroundings. Step outside and enjoy the tho

Key facts

• Formal dining room
• Spacious lot
• Cozy country kitchen

Tags

• BRICK RANCH
• SPACIOUS LOT
• ORIGINAL HARDWOOD FLOORS
• COZY COUNTRY KITCHEN
• FORMAL DINING ROOM
• COMFORTABLE FAMILY ROOM

Property features AI

Exterior

• Parking: Attached carport; Carport with 1 covered space
• Utilities: Public water; Public sewer
• Home design: Single-family residence; Residential property; Corner lot; Level topography; Paved public-maintained road access
• Construction: Brick veneer construction; Crawl space
• Exterior features: Garden; Private yard; Shed(s); Storage

Interior

• Kitchen: Cooktop; Double oven; Electric cooktop; Range hood; Stainless steel appliances; Vented exhaust fan
• Bedrooms: Total of 8 rooms (includes bedrooms and living spaces)
• Flooring: Hardwood flooring; Vinyl flooring
• Bathrooms: 2 full bathrooms
• Heating & cooling: Heat pump; Central air; Ceiling fans; Electric cooling
• Interior features: Breakfast bar; Ceiling fans; Chandelier; High-speed internet; Laminate countertops; Pantry; Storage; Fireplace in family room (masonry)
• Laundry & utility: Washer hookup; Electric water heater

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $235k.

Deal economics

• At list price, monthly cash flow is $10 ($121/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 $185k (21.2% below list).
• Recommended offer: $185k (21.2% below list) — sets the bar for 1% rule.
• Cap rate 6.3% vs local median 3.6% in Sanford — 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 72/100 on livability (#92 in NC) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, crime D-, commute F.
• Lee County Schools (rural): math 31% / reading 39% proficiency, ranked #131 of 178 in NC (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: East Lee Middle (math 21% / reading 37%, grade F, #350 of 475 statewide, top 74%, 531 students, 71% FRL); Lee County High (math 39% / reading 44%, grade F, #381 of 535 statewide, top 72%, 1,508 students, 60% FRL).
• Market conditions: Rents rising fast (+4.7%/yr); 526 active listings in the ZIP; 602 units permitted in Lee County in 2024 (0 in 5+ unit buildings).
• This rent runs 36% of the median local income ($61k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Lee County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

Negotiation context

• It's been on market 37 days — a 3% lower offer ($228k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts; this cycle's ask has dropped $54k (19%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Climate carrying-cost: major wind risk, 48% chance of damaging wind over 30y; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $185,208 (21.2% below list)

Questions for the listing agent

1. It's been on market 37 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
2. Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
5. Crime grade is D 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?
6. 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?
7. 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.
8. 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.
9. 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.

Investment metrics

• 1% rule: 0.79% ✗
• Cap rate: 6.34%
• Cash-on-cash: 0.18%
• DSCR: 1.01
• GRM: 10.6

CMA / ARV

• ARV (on-the-fly): $237,440
• Comps found: 5

Show comp detail 5 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
314 Mayflower Cir	0.11mi	3/2.0	1,660 (+12%)	1mo	$180,000	$108	75
503 Sherwood Dr	0.09mi	3/2.0	1,683 (+13%)	14mo	$270,000	$160	62
2708 Piedmont Dr	0.57mi	3/2.5	1,354 (-9%)	20mo	$295,255	$218	40
906 Delwood St	0.62mi	3/2.5	1,653 (+11%)	16mo	$223,000	$135	37
601 Lakeside Dr	0.73mi	4/3.0 (+1)	1,579 (+6%)	18mo	$297,000	$188	31

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 4.66% rent growth · sell at horizon

5-year hold

• IRR: -14.4%
• Equity multiple: 0.48×
• Total profit: $-34,370
• Equity at exit: $35,039

10-year hold

• IRR: -3.4%
• Equity multiple: 0.76×
• Total profit: $-16,066
• Equity at exit: $20,319

Cash invested: $65,800 (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 27330

• Home prices YoY: -19.4%
• Rents YoY: 4.7%
• Active inventory: 526
• Price-to-rent: 10.6×

Monthly cashflow live

• Estimated rent: $1,852 medium
• Mortgage (P&I): −$1,232
• Tax from tax record: −$123 /mo · $1,473/yr
• Insurance: −$98
• HOA: −$0
• Vacancy / Maint / Mgmt: −$389
• Net cashflow: $10

Break-even live

Break-even rent $1,839

Max offer price $235,000

Occupancy floor 94%

Sensitivity live

Price	-10% $143	-5% $77	+0% $10	+5% $-56	+10% $-123
Rent	-10% $-136	-5% $-63	+0% $10	+5% $83	+10% $156
Rate	-1.0pp $128	-0.5pp $70	base $10	+0.5pp $-51	+1.0pp $-113

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: $58,750
• Closing costs: $7,050
• Reserves months: —
• Total cash needed: —

Listing history 5 events

1. 2026-05-22
   status Pending
2. 2026-05-05
   status Active
3. 2026-05-05
   price $235,000
4. 2026-04-21
   status Pending
5. 2026-03-31
   listed $289,000 Active

ⓘ 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: $1,473 · $123/mo
• Projected year-2 tax: $1,927 · $161/mo
• Expected delta: +$454/yr (+$38/mo · 30.8%)

ⓘ 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 3/10 Moderate
• 🌡 Heat 6/10 Major 7 d/yr ≥105°F today · 17 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 48% 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: $22,225
• − Mortgage interest: −$13,164
• − Property taxes: −$1,473
• − Insurance: −$1,175
• − Repairs & maintenance: −$1,778
• − Management: −$1,778
• − Depreciation: −$6,836
• Taxable loss: −$3,979
• Est. tax savings @ 24.0%: +$955
• After-tax cash flow: $1,076/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: Lee County Schools
• NCES district ID: 3702560
• Math proficiency: 31% ▼ -6.00%
• Reading proficiency: 39% ▬ 0.00%
• Median HH income: $45,300
• Composite: 29.87/100
• National rank: #6403
• State rank: #131 of 178 in NC

Livability — Sanford

• Score: 72/100
• State rank: #92
• US rank: #6134

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Sanford, NC
• County: Lee County · 76,725 people
• City population: 76,725
• Metro: Sanford, NC
• Population (ZIP): 39,778
• Household income: $61,300
• Rent vs Own: 37.4% rent · 62.6% own
• Severe rent burden: 928.0

Population outlook (Lee County) Hauer SSP2

• Today (2025): 63,008 people
• By 2030: 64,443 · +2.3%
• By 2040: 66,898 · +6.2%
• By 2050: 68,310 · +8.4%
• By 2075: 70,920 · +12.6%
• By 2100: 70,402 · +11.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.63)
• Race & ethnicity: White 54% Hispanic / Latino 21% Black 19% Two or more races 10% Asian 1%
• Hispanic origin (detail): Mexican 12% Puerto Rican 2%
• Common ancestry: Slovak 4% Serbian 2% Italian 1%
• Foreign-born: 10% · Canada
• Languages at home: 81% English-only · Spanish 17%

Political lean MEDSL · Lee

• 2024 margin: R (+17.5) · D 40.8% · R 58.3%
• 2008→2024 swing: -9.1pp toward R · 2008: -8.4pp · 2024: -17.5pp
• All cycles: 2024: R+17.5 2020: R+14.9 2016: R+13.2 2012: R+10.2 2008: R+8.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -72.62%
• Current HPI: 302.3589
• Rent YoY: ▲ 4.66%
• Metro: Sanford, 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

-18.7% since first listed

5 events — show timeline

• 2026-05-22 Pending — LPRMLS
• 2026-05-05 Relisted — LPRMLS
• 2026-05-05 Price Changed $235,000 LPRMLS
• 2026-04-21 Pending — LPRMLS
• 2026-03-31 Listed $289,000 LPRMLS

Property tax history

+0.4%/yr

Latest (2025): $1,473 · +1.4% YoY. Source: county tax records.