122 King St

Toccoa, GA 30577

$203,000F

2 bd · 1.0 ba · 897 sqft · Built 1960 · SingleFamily · Active · 130 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,102/mo
• Mortgage (P&I): −$1,065
• Tax + insurance: −$203
• HOA: −$0
• Vac / Maint / Mgmt: −$231
• Net cashflow: $-397/mo
• Annual: $-4,758/yr
• Cap rate: 3.95%
• Cash-on-cash: -8.37%
• DSCR: 0.63
• 1% rule: 0.54%
• Cash to close: $56,840

Investor read

• This is a 2-bed/1.0-bath single-family listed at $203k.
• At list price, monthly cash flow is $-397 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $133k (34.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $110k (45.7% below list).
• It's been on market 130 days — a 12% lower offer ($179k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $110k (45.7% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($1k loan paydown + $13k appreciation (6.2% local appreciation)).
• Location reads 68/100 on livability (#131 in GA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Stephens County (rural): math 34% / reading 34% proficiency, ranked #74 of 174 in GA (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Liberty Elementary School (567 students, 75% FRL); Stephens County Middle School (math 29% / reading 31%, grade F, #243 of 470 statewide, top 53%, 860 students, 75% FRL); Stephens County High School (math 18% / reading 34%, grade F, #175 of 424 statewide, top 42%, 1,142 students, 46% FRL).
• Market conditions: 230 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); 52 units permitted in Stephens County in 2024 (0 in 5+ unit buildings).
• Stephens County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $25k; list at $203k implies a 725% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$35k 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.

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 130 days. Have you received any prior offers? Is the seller open to a 46% concession, seller financing, or rate buy-down credit?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.