Clayton Clark Plan

Rossville, GA 30741

$79,000F

3 bd · 2.0 ba · 1,056 sqft · Built — · SingleFamily · Active · 656 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,355/mo
• Mortgage (P&I): −$1,040
• Tax + insurance: −$757
• HOA: −$0
• Vac / Maint / Mgmt: −$285
• Net cashflow: $-726/mo
• Annual: $-8,718/yr
• Cap rate: 4.48%
• Cash-on-cash: -6.48%
• DSCR: 0.71
• 1% rule: 0.68%
• Cash to close: $55,521

Investor read

• This is a 3-bed/2.0-bath single-family listed at $79k. Condition is rated poor.
• At list price, monthly cash flow is $-726 ($-9k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $79k).
• It's been on market 656 days — a 12% lower offer ($70k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $70k (12.0% below list) — sets the bar for market timing.
• 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.
• Location reads 56/100 on livability (#484 in GA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A-, crime B+; Watch: amenities F, commute F, employment D-.
• Walker County (rural): math 25% / reading 29% proficiency, ranked #114 of 174 in GA (top 66%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Rossville Elementary School (math 22% / reading 17%, grade F, #878 of 1,228 statewide, top 75%, 416 students, 91% FRL); Rossville Middle School (math 13% / reading 25%, grade F, #368 of 470 statewide, top 79%, 444 students, 81% FRL); Ridgeland High School (math 23% / reading 19%, grade F, #225 of 424 statewide, top 54%, 1,244 students, 70% FRL) — zoned schools average 81% FRL vs 61% district-wide (19 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 3.8% of price; flood insurance adds $427/mo.
• Market conditions: Rents rising fast (+7.4%/yr); 549 active listings in the ZIP; 23 comparable units currently listed for rent nearby; rentals lingering (median 73d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 347 units permitted in Walker County in 2024 (24 in 5+ unit buildings).
• Walker County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); moderate wildfire risk; extreme-heat days projected 7→21/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 656 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?

Repairs flagged (vision-AI assessment)

• Major: Kitchen — No appliances, no structure
• Major: Bathrooms — No fixtures, no structure
• Major: Exterior — No siding, no windows, no doors
• Major: Flooring — No flooring
• Major: Interior walls — No paint
• Major: Systems — No HVAC, no electrical, no plumbing