3750 Old Cleveland Rd

Demorest, GA 30531

$239,000D

3 bd · 2.0 ba · 2,594 sqft · Built 1971 · SingleFamily · Active · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,950/mo
• Mortgage (P&I): −$1,253
• Tax + insurance: −$144
• HOA: −$0
• Vac / Maint / Mgmt: −$410
• Net cashflow: $143/mo
• Annual: $1,713/yr
• Cap rate: 7.01%
• Cash-on-cash: 2.56%
• DSCR: 1.11
• 1% rule: 0.82%
• Cash to close: $66,920

Investor read

• This is a 3-bed/2.0-bath single-family listed at $239k.
• At list price, monthly cash flow is $143 ($2k/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 $195k (18.4% below list).
• It's been on market 27 days — a 2% lower offer ($235k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $195k (18.4% 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 $7k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#162 in GA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A; Watch: employment C-, amenities F, commute F.
• Habersham County (rural): math 38% / reading 39% proficiency, ranked #53 of 174 in GA (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Cornelia Elementary School (math 29% / reading 25%, grade F, #689 of 1,228 statewide, top 58%, 479 students, 84% FRL); South Habersham Middle School (math 35% / reading 41%, grade F, #159 of 470 statewide, top 34%, 459 students, 66% FRL); Habersham Central High School (math 8% / reading 38%, grade F, #209 of 424 statewide, top 49%, 1,525 students, 47% FRL).
• Market conditions: 88 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 215 units permitted in Habersham County in 2024 (5 in 5+ unit buildings).
• Habersham County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 20 sale attempts since 6y ago; this cycle's ask has dropped $76k (24%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 7.0% vs local median 2.6% in Demorest — 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

• Built in 1971 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.