5644 River Oaks Pl Unit 7B

Sandy Springs, GA 30327

$735,000F

4 bd · 3.5 ba · 2,616 sqft · Built 1983 · Condo · Pending · 34 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,472/mo
• Mortgage (P&I): −$3,854
• Tax + insurance: −$899
• HOA: −$775
• Vac / Maint / Mgmt: −$1,359
• Net cashflow: $-415/mo
• Annual: $-4,983/yr
• Cap rate: 5.61%
• Cash-on-cash: -2.42%
• DSCR: 0.89
• 1% rule: 0.88%
• Cash to close: $205,800

Investor read

• This is a 4-bed/3.5-bath condo listed at $735k.
• At list price, monthly cash flow is $-415 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $662k (10.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $647k (11.9% below list).
• It's been on market 34 days — a 3% lower offer ($713k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $647k (11.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#45 in GA) — a middle-class / working-renter tenant base. Strengths: employment A+, crime A-, commute A-; Watch: amenities F, cost of living F.
• Fulton County (suburban): math 49% / reading 53% proficiency, ranked #12 of 174 in GA (top 7%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Heards Ferry Elementary School (math 78% / reading 78%, grade A, #22 of 1,228 statewide, top 2%, 703 students, 4% FRL); Ridgeview Charter School (math 33% / reading 45%, grade F, #155 of 470 statewide, top 33%, 996 students, 45% FRL); Riverwood International Charter School (math 24% / reading 10%, grade F, #269 of 424 statewide, top 65%, 1,737 students, 30% FRL).
• Market conditions: Rents rising (+1.8%/yr); 247 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 20d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 11,565 units permitted in Fulton County in 2024 (8,159 in 5+ unit buildings).
• Fulton County population projected at +38% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $604k; 22% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.6% vs local median 2.6% in Sandy Springs — 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 ($189k/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?
• It's been on market 34 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.