27 Mcleod St

Lyerly, GA 30730

$150,000D

3 bd · 1.0 ba · 1,026 sqft · Built 1957 · SingleFamily · Under Contract · 99 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,136/mo
• Mortgage (P&I): −$787
• Tax + insurance: −$126
• HOA: −$0
• Vac / Maint / Mgmt: −$238
• Net cashflow: $-16/mo
• Annual: $-188/yr
• Cap rate: 6.17%
• Cash-on-cash: -0.45%
• DSCR: 0.98
• 1% rule: 0.76%
• Cash to close: $42,000

Investor read

• This is a 3-bed/1.0-bath single-family listed at $150k.
• At list price, monthly cash flow is $-16 ($-188/yr) — negative.
• To cash-flow at today's rent, offer at most $147k (1.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $114k (24.3% below list).
• It's been on market 99 days — a 9% lower offer ($136k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $114k (24.3% below list) — sets the bar for 1% rule.
• In year one you build about $3k of equity ($1k loan paydown + $2k appreciation (1.6% local appreciation)).
• Location reads 62/100 on livability (#299 in GA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A-; Watch: crime F, amenities F, commute F.
• Chattooga County (rural): math 18% / reading 26% proficiency, ranked #140 of 174 in GA (top 80%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 70% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Lyerly Elementary School (math 32% / reading 35%, grade F, #562 of 1,228 statewide, top 46%, 334 students, 76% FRL); Summerville Middle School (math 12% / reading 23%, grade F, #377 of 470 statewide, top 81%, 384 students, 80% FRL); Chattooga High School (math 17% / reading 32%, grade F, #184 of 424 statewide, top 48%, 713 students, 65% FRL) — zoned schools at 74% FRL track the district average.
• Watch-outs: built in 1957 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 28 active listings in the ZIP; 2 units permitted in Chattooga County in 2024 (0 in 5+ unit buildings).
• Chattooga County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 14y ago; this cycle's ask has dropped $10k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $50k; list at $150k implies a 200% gain — meaningful room to come down on a strong offer.
• At projected returns (1.6% appreciation + 3.0% rent growth), your $42k cash investment doubles in ~9 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→19/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 99 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1957 — 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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?