878 Hospital Rd

Commerce, GA 30529

$2,050,000D-

None bd · 4.0 ba · 3,121 sqft · Built 2002 · MultiFamily · Active · 62 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $13,195/mo
• Mortgage (P&I): −$10,750
• Tax + insurance: −$2,094
• HOA: −$0
• Vac / Maint / Mgmt: −$2,771
• Net cashflow: $-2,421/mo
• Annual: $-29,047/yr
• Cap rate: 4.88%
• Cash-on-cash: -5.06%
• DSCR: 0.77
• 1% rule: 0.64%
• Cash to close: $574,000

Investor read

• This is a 10 × 3-bed/2-bath units multifamily listed at $2.05M.
• At list price, monthly cash flow is $-2k ($-29k/yr) — negative. Per door: $-242/mo.
• To cash-flow at today's rent, offer at most $1.62M (20.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.32M (35.6% below list).
• It's been on market 62 days — a 6% lower offer ($1.93M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.32M (35.6% below list) — sets the bar for 1% rule.
• In year one you build about $219k of equity ($14k loan paydown + $205k appreciation (10.0% local appreciation)).
• Location reads 64/100 on livability (#271 in GA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D, amenities F, commute F.
• Commerce City (town): math 49% / reading 49% proficiency, ranked #19 of 174 in GA (top 11%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Commerce Primary (486 students, 52% FRL); Commerce Middle School (math 44% / reading 51%, grade C-, #84 of 470 statewide, top 19%, 530 students, 56% FRL); Commerce High School (math 47% / reading 47%, grade D-, #37 of 424 statewide, top 9%, 493 students, 45% FRL) — zoned schools at 51% FRL track the district average.
• Market conditions: Rents falling (-4.2%/yr); 155 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 2,167 units permitted in Jackson County in 2024 (59 in 5+ unit buildings).
• Jackson County population projected at +14% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 5 sale attempts since 12y ago; this cycle's ask has dropped $150k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $1.62M; 26% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$352k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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 4.9% vs local median 3.4% in Commerce — 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.
• At $13,195/mo this rent would consume 255% of the median local household income ($62k/yr) (locally 297% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 62 days. Have you received any prior offers? Is the seller open to a 36% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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?