161 Green St

Franklin, NC 28734

$263,800D+

3 bd · 2.0 ba · 1,680 sqft · Built 2012 · SingleFamily · Active · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,854/mo
• Mortgage (P&I): −$1,383
• Tax + insurance: −$440
• HOA: −$0
• Vac / Maint / Mgmt: −$389
• Net cashflow: $-358/mo
• Annual: $-4,301/yr
• Cap rate: 4.66%
• Cash-on-cash: -5.82%
• DSCR: 0.74
• 1% rule: 0.70%
• Cash to close: $73,864

Investor read

• This is a 3-bed/2.0-bath single-family listed at $264k.
• At list price, monthly cash flow is $-358 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $212k (19.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $185k (29.7% below list).
• It's been on market 25 days — a 2% lower offer ($260k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $185k (29.7% below list) — sets the bar for 1% rule.
• In year one you build about $18k of equity ($2k loan paydown + $16k appreciation (6.0% local appreciation)).
• Location reads 74/100 on livability (#55 in NC, #4,469 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing B+; Watch: crime C-, employment D+, commute F.
• Macon County Schools (rural): math 47% / reading 50% proficiency, ranked #71 of 178 in NC (top 40%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Iotla Valley Elementary (math 37% / reading 42%, grade F, #694 of 1,410 statewide, top 53%, 403 students, 71% FRL); Macon Middle School (math 38% / reading 48%, grade D-, #191 of 475 statewide, top 41%, 599 students, 59% FRL); Franklin High (math 77% / reading 60%, grade B, #134 of 535 statewide, top 25%, 1,005 students, 51% FRL).
• Market conditions: 608 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 218 units permitted in Macon County in 2024 (0 in 5+ unit buildings).
• Macon County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• By year 3, paydown + projected appreciation supports a ~$43k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.7% vs local median 2.4% in Franklin — 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.
• This rent runs 41% of the median local income ($54k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• 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.