412 Contentment Dr

Locust, NC 28097

$329,900D

3 bd · 3.0 ba · 2,064 sqft · Built 2019 · SingleFamily · Active · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,318/mo
• Mortgage (P&I): −$1,730
• Tax + insurance: −$403
• HOA: −$33
• Vac / Maint / Mgmt: −$487
• Net cashflow: $-334/mo
• Annual: $-4,014/yr
• Cap rate: 5.08%
• Cash-on-cash: -4.35%
• DSCR: 0.81
• 1% rule: 0.70%
• Cash to close: $92,372

Investor read

• This is a 3-bed/3.0-bath single-family listed at $330k.
• At list price, monthly cash flow is $-334 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $271k (17.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $232k (29.7% below list).
• It's been on market 27 days — a 2% lower offer ($325k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $232k (29.7% below list) — sets the bar for 1% rule.
• In year one you build about $35k of equity ($2k loan paydown + $33k appreciation (10.0% local appreciation)).
• Location reads 62/100 on livability (#458 in NC) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities F, commute F, health & safety F.
• Stanly County Schools (rural): math 38% / reading 42% proficiency, ranked #113 of 178 in NC (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Locust Elementary (math 60% / reading 54%, grade C+, #249 of 1,410 statewide, top 20%, 486 students, 99% FRL); West Stanly Middle School (math 40% / reading 47%, grade D, #182 of 475 statewide, top 40%, 619 students, 43% FRL); West Stanly High (math 72% / reading 62%, grade B, #142 of 535 statewide, top 28%, 762 students, 36% FRL).
• Zoned-school proficiency averages 56% at this address vs 40% district-wide (+16 pts) — the actual schools serving this property are materially stronger than the Stanly County Schools average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: 175 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 4d on market — plan ~1-2 weeks tenant-placement turnaround); 367 units permitted in Stanly County in 2024 (0 in 5+ unit buildings).
• Stanly County population projected at -10% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 2, paydown + projected appreciation supports a ~$57k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.1% vs local median 2.6% in Locust — 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

• 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.