1205 Holly St NW Unit B

Atlanta, GA 30318

$1,275,000F

3 bd · 4.5 ba · 3,987 sqft · Built 2025 · Townhouse · Active · 90 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,408/mo
• Mortgage (P&I): −$7,053
• Tax + insurance: −$2,241
• HOA: −$0
• Vac / Maint / Mgmt: −$926
• Net cashflow: $-5,812/mo
• Annual: $-69,739/yr
• Cap rate: 1.11%
• Cash-on-cash: -18.52%
• DSCR: 0.18
• 1% rule: 0.33%
• Cash to close: $376,571

Investor read

• This is a 3-bed/4.5-bath townhouse listed at $1.27M. Condition is rated excellent.
• At list price, monthly cash flow is $-6k ($-70k/yr) — negative.
• To cash-flow at today's rent, offer at most $504k (60.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $441k (65.4% below list).
• It's been on market 90 days — a 6% lower offer ($1.20M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $441k (65.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $9k of loan paydown is wiped out by about $40k 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: Centennial Place Academy (Charter) (math 12% / reading 12%, grade F, #1,041 of 1,228 statewide, top 87%, 804 students, 100% FRL, charter); David T Howard Middle School (math 58% / reading 63%, grade B+, #39 of 470 statewide, top 8%, 1,119 students, 19% FRL); Midtown High School (math 22% / reading 34%, grade F, #151 of 424 statewide, top 36%, 1,602 students, 19% FRL) — zoned schools average 46% FRL vs 71% district-wide (25 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents rising (+3.3%/yr); 896 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals lingering (median 43d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% 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.
• 4 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• 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 1.1% vs local median 3.2% in Atlanta — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $4,408/mo this rent would consume 64% of the median local household income ($83k/yr) — 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 90 days. Have you received any prior offers? Is the seller open to a 65% 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.
• 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.