480 Sky High Dr

Sky Valley, GA 30537

$359,900D

4 bd · 3.0 ba · 3,824 sqft · Built 1981 · SingleFamily · Active · 282 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,176/mo
• Mortgage (P&I): −$1,887
• Tax + insurance: −$600
• HOA: −$0
• Vac / Maint / Mgmt: −$457
• Net cashflow: $-768/mo
• Annual: $-9,218/yr
• Cap rate: 3.73%
• Cash-on-cash: -9.15%
• DSCR: 0.59
• 1% rule: 0.60%
• Cash to close: $100,772

Investor read

• This is a 4-bed/3.0-bath single-family listed at $360k.
• At list price, monthly cash flow is $-768 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $249k (30.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $218k (39.5% below list).
• It's been on market 282 days — a 12% lower offer ($317k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $218k (39.5% below list) — sets the bar for 1% rule.
• In year one you build about $38k of equity ($2k loan paydown + $36k appreciation (10.0% local appreciation)).
• Location reads 53/100 on livability (#559 in GA) — a working-class tenant base; expect higher turnover. Strengths: housing A+, crime A, cost of living B; Watch: amenities F, commute F, employment F.
• Rabun County (rural): math 42% / reading 44% proficiency, ranked #37 of 174 in GA (top 21%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Rabun County Elementary School (math 37% / reading 42%, grade F, #435 of 1,228 statewide, top 37%, 660 students, 58% FRL); Rabun County Middle School (math 47% / reading 46%, grade D+, #94 of 470 statewide, top 20%, 342 students, 59% FRL); Rabun County High School (math 57% / reading 47%, grade D+, #26 of 424 statewide, top 6%, 653 students, 48% FRL) — zoned schools at 55% FRL track the district average.
• Market conditions: 96 active listings in the ZIP; 147 units permitted in Rabun County in 2024 (0 in 5+ unit buildings).
• Rabun County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 6 sale attempts since 6y ago; this cycle's ask has dropped $40k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $248k; 45% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$62k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.7% vs local median 2.4% in Sky Valley — 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?
• It's been on market 282 days. Have you received any prior offers? Is the seller open to a 40% 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.