4 bd · 2.0 ba ·
2,109 sqft ·
Built 1950
· MultiFamily
· Pending
· 29 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$2,847/mo
Mortgage (P&I)
−$1,363
Tax + insurance
−$458
HOA
−$0
Vac / Maint / Mgmt
−$598
Net cashflow
$428/mo
Annual
$5,137/yr
Cap rate
8.27%
Cash-on-cash
7.06%
DSCR
1.31
1% rule
1.09%
Cash to close
$72,800
Investor read
This is a 2 × 2-bed/1.0-bath units multifamily listed at $260k.
At list price, monthly cash flow is $428 ($5k/yr) — positive. Per door: $214/mo.
The deal already cash-flows at list — no discount required.
Meets the 1% rule at list price ($3k rent vs $260k).
It's been on market 29 days — a 2% lower offer ($256k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $256k (1.5% below list) — sets the bar for market timing.
Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
Location reads 81/100 on livability (#8 in SC, #1,502 nationally) — a professional / high-income tenant draw. Strengths: housing A+, health & safety A+, employment A; Watch: commute F.
Lexington 01 (suburban): math 42% / reading 53% proficiency, ranked #11 of 80 in SC (top 14%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Zoned schools: Lexington Elementary (math 38% / reading 34%, grade F, #332 of 597 statewide, top 56%, 701 students, 33% FRL); Lexington High (math 69% / reading 92%, grade A, #23 of 196 statewide, top 11%, 2,410 students, 17% FRL) — zoned schools at 25% FRL track the district average.
Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
Market conditions: Rents rising (+3.2%/yr); 694 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,712 units permitted in Lexington County in 2024 (0 in 5+ unit buildings).
Lexington County population projected at +26% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
3 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
Climate carrying-cost: major wind risk, 59% 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.
This rent runs 32% of the median local income ($106k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.
Questions for listing agent
Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
Built in 1950 — 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.
CashFlowRE · CFR-90S19Q2PJ64SFH
· Data 3 weeks agocashflowre.app · 2026-05-29