1664 Grouse Moor Dr #8

Sugar Mountain, NC 28604

$229,000D

2 bd · 2.0 ba · 888 sqft · Built 1984 · Condo · Active · 293 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,150/mo
• Mortgage (P&I): −$1,201
• Tax + insurance: −$180
• HOA: −$309
• Vac / Maint / Mgmt: −$452
• Net cashflow: $9/mo
• Annual: $103/yr
• Cap rate: 6.34%
• Cash-on-cash: 0.16%
• DSCR: 1.01
• 1% rule: 0.94%
• Cash to close: $64,120

Investor read

• This is a 2-bed/2.0-bath condo listed at $229k.
• At list price, monthly cash flow is $9 ($103/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $215k (6.1% below list).
• It's been on market 293 days — a 12% lower offer ($202k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $202k (12.0% below list) — sets the bar for market timing.
• 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 72/100 on livability (#81 in NC) — a middle-class / working-renter tenant base. Strengths: employment A+, crime A, housing A; Watch: health & safety C-, amenities F, commute F.
• Avery County Schools (rural): math 47% / reading 52% proficiency, ranked #70 of 178 in NC (top 39%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Banner Elk Elementary (math 57% / reading 62%, grade B-, #205 of 1,410 statewide, top 16%, 176 students, 47% FRL); Avery Middle (math 43% / reading 49%, grade D+, #151 of 475 statewide, top 32%, 230 students, 72% FRL); Avery County High (math 47% / reading 67%, grade C, #248 of 535 statewide, top 48%, 613 students, 58% FRL).
• Market conditions: 743 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 95 units permitted in Avery County in 2024 (0 in 5+ unit buildings).
• Avery County population projected to shrink 10% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Cap rate 6.3% vs local median 2.6% in Sugar Mountain — 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

• It's been on market 293 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.