3724 Kathy Rd · Morganton, NC 28655

$185,000

3 bd · 1.0 ba · 1,040 sqft · SingleFamily public records · 103 Days on market

Built 1945 0.68 ac lot Est $189k · at est.

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Why this score? — see what drove the D+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +16.3/30.0
• ARV discount +8.5/15.0
• DSCR +5.0/10.0
• Schools +3.8/10.0
• Livability +3.5/5.0
• 1% rule +3.4/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Beautifully remodeled 3 bedroom 1 bath home on large lot. New...Granite Counter Tops, Kitchen Cabinets, Windows, Flooring, Vinyl siding, Gutter, front and back decks and more! The roof is 2 years old. One level living with large utility room. New heat pump. This home is a must see!!!

Key facts

• 0.68 acre lot
• Built 1945
• Listed 103 days

Property features AI

Finance

• HOA & community: No HOA

Exterior

• Parking: Driveway
• Utilities: County water; Septic system installed
• Home design: Single-family residential (site built); One story; R-3 zoning
• Construction: Vinyl exterior; Crawl space foundation
• Exterior features: Lot approximately 0.68 acres; Roads are dirt, gravel and paved; Publicly maintained road access

Interior

• Kitchen: Dishwasher
• Bedrooms: Three bedrooms on the main level
• Bathrooms: One full bathroom on the main level
• Heating & cooling: Central heating; Central air conditioning
• Interior features: Six total rooms; Dishwasher
• Laundry & utility: Laundry room with washer and electric dryer hookups

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $185k.

Deal economics

• At list price, monthly cash flow is $100 ($1k/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 $156k (15.6% below list).
• Recommended offer: $156k (15.6% below list) — sets the bar for 1% rule.
• Cap rate 6.9% vs local median 3.5% in Morganton — 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.

Location & tenants

• Location reads 69/100 on livability (#149 in NC) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: amenities D, crime D-, commute F.
• Burke County Schools (rural): math 43% / reading 47% proficiency, ranked #89 of 178 in NC (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Glen Alpine Elementary (math 47% / reading 47%, grade D-, #497 of 1,410 statewide, top 38%, 279 students, 81% FRL); Table Rock Middle (math 36% / reading 43%, grade F, #232 of 475 statewide, top 50%, 502 students, 70% FRL); Freedom High (math 61% / reading 51%, grade C, #264 of 535 statewide, top 49%, 1,414 students, 64% FRL) — zoned schools average 72% FRL vs 52% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 436 active listings in the ZIP; 422 units permitted in Burke County in 2024 (94 in 5+ unit buildings).
• This rent runs 32% of the median local income ($58k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Burke County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 103 days — a 9% lower offer ($168k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 5y ago; this cycle's ask has dropped $20k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: built in 1945 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $156,109 (15.6% below list)

Questions for the listing agent

1. It's been on market 103 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
2. Built in 1945 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. Crime grade is D 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?
7. 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?
8. 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.
9. 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.
10. 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.

Investment metrics

• 1% rule: 0.84% ✗
• Cap rate: 6.94%
• Cash-on-cash: 2.33%
• DSCR: 1.10
• GRM: 9.9

CMA / ARV

• ARV (on-the-fly): $189,280
• Comps found: 2

Show comp detail 2 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
4588 Homestead Dr	0.44mi	3/2.0	960 (-8%)	9mo	$175,000	$182	55
4730 Homestead Way	0.54mi	3/2.0	1,064 (+2%)	23mo	$169,000	$159	48

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -12.7%
• Equity multiple: 0.54×
• Total profit: $-23,644
• Equity at exit: $27,584

10-year hold

• IRR: -3.7%
• Equity multiple: 0.76×
• Total profit: $-12,617
• Equity at exit: $15,995

Cash invested: $51,800 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 85 Strongly Landlord-Friendly
• State North Carolina: 85 Strongly Landlord-Friendly · R+3
• County: — inherits STATE
• City: — inherits STATE

10-day notice; preempted; landlord-favorable but court speed varies.

Methodology + full state rankings →

ZIP-level market 28655

• Home prices YoY: -13.2%
• Active inventory: 436
• Price-to-rent: 9.9×

Monthly cashflow live

• Estimated rent: $1,561 medium
• Mortgage (P&I): −$970
• Tax from tax record: −$86 /mo · $1,026/yr
• Insurance: −$77
• HOA: −$0
• Vacancy / Maint / Mgmt: −$328
• Net cashflow: $100

Break-even live

Break-even rent $1,434

Max offer price $185,000

Occupancy floor 89%

Sensitivity live

Price	-10% $205	-5% $153	+0% $100	+5% $48	+10% $-4
Rent	-10% $-23	-5% $39	+0% $100	+5% $162	+10% $224
Rate	-1.0pp $194	-0.5pp $148	base $100	+0.5pp $53	+1.0pp $4

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $46,250
• Closing costs: $5,550
• Reserves months: —
• Total cash needed: —

Listing history 21 events

1. 2026-06-13
   status $185,000 Pending 103 DOM
2. 2026-06-10
   days on market $185,000 Active 103 DOM
3. 2026-06-09
   days on market $185,000 Active 102 DOM
4. 2026-06-08
   days on market $185,000 Active 101 DOM
5. 2026-06-07
   days on market $185,000 Active 100 DOM
6. 2026-06-05
   days on market $185,000 Active 97 DOM
7. 2026-06-02
   days on market $185,000 Active 95 DOM
8. 2026-06-01
   days on market $185,000 Active 94 DOM
9. 2026-05-31
   days on market $185,000 Active 93 DOM
10. 2026-05-30
    days on market $185,000 Active 92 DOM
11. 2026-04-22
    price $185,000
12. 2026-04-03
    price $190,000
13. 2026-02-28
    listed $205,000 Active
14. 2026-02-09
    historical $205,000
15. 2022-03-28
    soldstatus $167,000 Closed 289-char remark

    Show marketing remark (289 chars)

    Beautifully remodeled 3 bedroom 1 bath home on large lot. New...Granite Counter Tops, Kitchen Cabinets, Windows, Flooring, Vinyl siding, Gutter, front and back decks and more! The roof is 2 years old. One level living with large utility room. New heat pump. This home is a must see!!!

16. 2022-03-28
    soldstatus $175,000

    Show marketing remark (289 chars)

    Beautifully remodeled 3 bedroom 1 bath home on large lot. New...Granite Counter Tops, Kitchen Cabinets, Windows, Flooring, Vinyl siding, Gutter, front and back decks and more! The roof is 2 years old. One level living with large utility room. New heat pump. This home is a must see!!!

17. 2022-02-03
    historical Active Under Contract 289-char remark

    Show marketing remark (289 chars)

    Beautifully remodeled 3 bedroom 1 bath home on large lot. New...Granite Counter Tops, Kitchen Cabinets, Windows, Flooring, Vinyl siding, Gutter, front and back decks and more! The roof is 2 years old. One level living with large utility room. New heat pump. This home is a must see!!!

18. 2022-01-14
    status Active 289-char remark

    Show marketing remark (289 chars)

    Beautifully remodeled 3 bedroom 1 bath home on large lot. New...Granite Counter Tops, Kitchen Cabinets, Windows, Flooring, Vinyl siding, Gutter, front and back decks and more! The roof is 2 years old. One level living with large utility room. New heat pump. This home is a must see!!!

19. 2022-01-07
    historical Active Under Contract 289-char remark

    Show marketing remark (289 chars)

    Beautifully remodeled 3 bedroom 1 bath home on large lot. New...Granite Counter Tops, Kitchen Cabinets, Windows, Flooring, Vinyl siding, Gutter, front and back decks and more! The roof is 2 years old. One level living with large utility room. New heat pump. This home is a must see!!!

20. 2022-01-04
    price $169,000 289-char remark

    Show marketing remark (289 chars)

    Beautifully remodeled 3 bedroom 1 bath home on large lot. New...Granite Counter Tops, Kitchen Cabinets, Windows, Flooring, Vinyl siding, Gutter, front and back decks and more! The roof is 2 years old. One level living with large utility room. New heat pump. This home is a must see!!!

21. 2021-12-21
    listed $179,000 Active 289-char remark

    Show marketing remark (289 chars)

    Beautifully remodeled 3 bedroom 1 bath home on large lot. New...Granite Counter Tops, Kitchen Cabinets, Windows, Flooring, Vinyl siding, Gutter, front and back decks and more! The roof is 2 years old. One level living with large utility room. New heat pump. This home is a must see!!!

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast NC · Resets to sale price

• Current annual tax: $1,026 · $86/mo
• Projected year-2 tax: $1,517 · $126/mo
• Expected delta: +$491/yr (+$41/mo · 47.8%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 5/10 Major
• 🌡 Heat 5/10 Major 7 d/yr ≥103°F today · 18 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $18,733
• − Mortgage interest: −$10,363
• − Property taxes: −$1,026
• − Insurance: −$925
• − Repairs & maintenance: −$1,499
• − Management: −$1,499
• − Depreciation: −$5,382
• Taxable loss: −$1,960
• Est. tax savings @ 24.0%: +$470
• After-tax cash flow: $1,676/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Burke County Schools
• NCES district ID: 3700480
• Math proficiency: 43% ▼ -2.00%
• Reading proficiency: 47% ▬ 0.00%
• Median HH income: $38,342
• Composite: 37.51/100
• National rank: #4400
• State rank: #89 of 178 in NC

Livability — Morganton

• Score: 69/100
• State rank: #149
• US rank: #8307

Category grades

Amenities D Commute F Cost of living A+ Crime D- Employment D- Housing A Health & safety A+ User ratings C-

Schools grade is shown separately in the Schools card above.

Census & demographics

• County: Burke County · 55,100 people
• City population: 55,100
• Metro: Hickory-Lenoir-Morganton, NC
• Population (ZIP): 55,100
• Household income: $57,713
• Rent vs Own: 27.3% rent · 72.7% own
• Severe rent burden: 1145.0

Population outlook (Burke County) Hauer SSP2

• Today (2025): 86,552 people
• By 2030: 84,123 · -2.8%
• By 2040: 78,165 · -9.7%
• By 2050: 71,099 · -17.9%
• By 2075: 56,264 · -35.0%
• By 2100: 44,742 · -48.3%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (75%)
• Race & ethnicity: White 75% Hispanic / Latino 11% Black 8% Two or more races 5% Asian 3% Native American 2%
• Hispanic origin (detail): Mexican 3%
• Common ancestry: Slovak 2% Italian 2% Serbian 2%
• Foreign-born: 7% · Canada, China
• Languages at home: 87% English-only · Spanish 8% Other Asian/Pacific 1% Arabic 1%

Political lean MEDSL · Burke

• 2024 margin: Solid R (+41.2) · D 29.0% · R 70.3%
• 2008→2024 swing: -22.0pp toward R · 2008: -19.2pp · 2024: -41.2pp
• All cycles: 2024: R+41.2 2020: R+40.1 2016: R+39.4 2012: R+23.6 2008: R+19.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -55.07%
• Current HPI: 362.0732
• Rent YoY: —
• Metro: Hickory-Lenoir-Morganton, NC
• State GDP YoY: ▲ 3.28%
• F500 in state: 26

Industry mix (Fortune 500 HQ in NC)

Industry	F500 HQs	Revenue
▸Financial Services	2	$213B
▸Retail	2	$95B
▸Industrial Conglomerate	1	$38B
▸Metals / Steel	1	$35B
▸Utilities	1	$30B
▸Industrial Machinery	1	$19B

Price history

+3.4% since first listed

11 events — show timeline

• 2026-04-22 Price Changed $185,000 CANOPYMLS as Distributed by MLS Grid
• 2026-04-03 Price Changed $190,000 CANOPYMLS as Distributed by MLS Grid
• 2026-02-28 Listed $205,000 CANOPYMLS as Distributed by MLS Grid
• 2026-02-09 Coming Soon $205,000 CANOPYMLS as Distributed by MLS Grid
• 2022-03-28 Sold (Public Records) $175,000 Public Records
• 2022-03-28 Sold (MLS) $167,000 CANOPYMLS as Distributed by MLS Grid
• 2022-02-03 Contingent — CANOPYMLS as Distributed by MLS Grid
• 2022-01-14 Relisted — CANOPYMLS as Distributed by MLS Grid
• 2022-01-07 Contingent — CANOPYMLS as Distributed by MLS Grid
• 2022-01-04 Price Changed $169,000 CANOPYMLS as Distributed by MLS Grid
• 2021-12-21 Listed $179,000 CANOPYMLS as Distributed by MLS Grid

Property tax history

+11.0%/yr

Latest (2025): $1,026 · -0.8% YoY. Source: county tax records.