Hill V Modern Farmhouse Plan

Athens-Clarke County unified government (balance), GA 30606

$331,822F

4 bd · 3.5 ba · 2,688 sqft · Built — · SingleFamily · Active · 811 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,637/mo
• Mortgage (P&I): −$1,900
• Tax + insurance: −$604
• HOA: −$0
• Vac / Maint / Mgmt: −$554
• Net cashflow: $-420/mo
• Annual: $-5,038/yr
• Cap rate: 4.90%
• Cash-on-cash: -4.97%
• DSCR: 0.78
• 1% rule: 0.73%
• Cash to close: $101,430

Investor read

• This is a 4-bed/3.5-bath single-family listed at $332k. Condition is rated excellent.
• At list price, monthly cash flow is $-420 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $302k (9.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $264k (20.5% below list).
• It's been on market 811 days — a 12% lower offer ($292k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $264k (20.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Clarke County (urban): math 17% / reading 21% proficiency, ranked #146 of 174 in GA (top 84%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 74% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Cleveland Road Elementary School (math 12% / reading 27%, grade F, #878 of 1,228 statewide, top 75%, 284 students, 83% FRL); Burney-Harris-Lyons Middle School (math 19% / reading 23%, grade F, #342 of 470 statewide, top 73%, 728 students, 83% FRL); Clarke Central High School (math 15% / reading 24%, grade F, #238 of 424 statewide, top 57%, 1,836 students, 83% FRL).
• Market conditions: Rents rising (+1.6%/yr); 528 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals lingering (median 154d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; 1,172 units permitted in Clarke County in 2024 (876 in 5+ unit buildings).
• Clarke County population projected at +31% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 4.9% vs local median 3.4% in Athens-Clarke County unified government (balance) — 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.
• At $2,637/mo this rent would consume 50% of the median local household income ($63k/yr) — very limited rent-growth headroom before tenants either downsize or default.

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 811 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• 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.
• 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.