201 Laurelwood Cir

Chattanooga Valley, GA 30741

$222,900F

3 bd · 1.5 ba · 1,118 sqft · Built 1977 · SingleFamily · Active · 91 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,285/mo
• Mortgage (P&I): −$1,169
• Tax + insurance: −$372
• HOA: −$0
• Vac / Maint / Mgmt: −$270
• Net cashflow: $-526/mo
• Annual: $-6,307/yr
• Cap rate: 3.46%
• Cash-on-cash: -10.11%
• DSCR: 0.55
• 1% rule: 0.58%
• Cash to close: $62,412

Investor read

• This is a 3-bed/1.5-bath single-family listed at $223k.
• At list price, monthly cash flow is $-526 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $147k (34.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $128k (42.4% below list).
• It's been on market 91 days — a 9% lower offer ($203k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $128k (42.4% 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 58/100 on livability (#427 in GA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A-, housing B+; Watch: amenities F, commute F, employment F.
• Walker County (rural): math 25% / reading 29% proficiency, ranked #114 of 174 in GA (top 66%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Cherokee Ridge Elementary (math 36% / reading 35%, grade F, #519 of 1,228 statewide, top 42%, 562 students, 73% FRL); Chattanooga Valley Middle School (math 33% / reading 40%, grade F, #167 of 470 statewide, top 38%, 491 students, 67% FRL); Ridgeland High School (math 23% / reading 19%, grade F, #225 of 424 statewide, top 54%, 1,244 students, 70% FRL).
• Market conditions: Rents rising fast (+7.4%/yr); 430 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 347 units permitted in Walker County in 2024 (24 in 5+ unit buildings).
• Walker County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 10 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.
• Current owner paid $88k; list at $223k implies a 152% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.5% vs local median 4.7% in Chattanooga Valley — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 91 days. Have you received any prior offers? Is the seller open to a 42% concession, seller financing, or rate buy-down credit?
• Built in 1977 — 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 F-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.