4850 Chappells Hwy

Saluda, SC 29138

$94,000B

3 bd · 2.0 ba · 1,701 sqft · Built 1960 · Other · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,119/mo
• Mortgage (P&I): −$493
• Tax + insurance: −$102
• HOA: −$0
• Vac / Maint / Mgmt: −$235
• Net cashflow: $289/mo
• Annual: $3,470/yr
• Cap rate: 9.98%
• Cash-on-cash: 13.18%
• DSCR: 1.59
• 1% rule: 1.19%
• Cash to close: $26,320

Investor read

• This is a 3-bed/2.0-bath other listed at $94k.
• At list price, monthly cash flow is $289 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $94k).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $5k of equity ($650 loan paydown + $4k appreciation (4.3% local appreciation)).
• Location reads 65/100 on livability (#134 in SC) — a middle-class / working-renter tenant base. Strengths: cost of living A+; Watch: amenities F, commute F, employment F.
• Saluda 01 (rural): math 38% / reading 37% proficiency, ranked #37 of 80 in SC (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Saluda High (math 32% / reading 62%, grade D-, #158 of 196 statewide, top 82%, 652 students, 80% FRL).
• Market conditions: 36 active listings in the ZIP; 52 units permitted in Saluda County in 2024 (0 in 5+ unit buildings).
• At projected returns (4.3% appreciation + 3.0% rent growth), your $26k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 43% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.