508 W Ashley Ave #12

Folly Beach, SC 29439

$319,000C

7 bd · 7.0 ba · 5,474 sqft · Built 2007 · Timeshare · Active · 157 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,422/mo
• Mortgage (P&I): −$1,673
• Tax + insurance: −$992
• HOA: −$933
• Vac / Maint / Mgmt: −$929
• Net cashflow: $-104/mo
• Annual: $-1,254/yr
• Cap rate: 7.63%
• Cash-on-cash: 4.78%
• DSCR: 1.21
• 1% rule: 1.39%
• Cash to close: $89,320

Investor read

• This is a 7-bed/7.0-bath timeshare listed at $319k.
• At list price, monthly cash flow is $-104 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $304k (4.7% below list).
• Meets the 1% rule at list price ($4k rent vs $319k).
• It's been on market 157 days — a 12% lower offer ($281k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $281k (12.0% below list) — sets the bar for market timing.
• In year one you build about $8k of equity ($2k loan paydown + $6k appreciation (1.9% local appreciation)).
• Location reads 53/100 on livability (#340 in SC) — a working-class tenant base; expect higher turnover. Strengths: employment A+; Watch: crime D+, amenities F, commute F.
• Charleston 01 (urban): math 48% / reading 53% proficiency, ranked #7 of 80 in SC (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: James Island Elementary (math 48% / reading 47%, grade D, #199 of 597 statewide, top 35%, 582 students, 53% FRL); Camp Road Middle (math 50% / reading 57%, grade C+, #29 of 229 statewide, top 13%, 864 students, 38% FRL); James Island Charter High (math 73% / reading 89%, grade A, #21 of 196 statewide, top 11%, 1,589 students, 36% FRL, charter) — zoned schools at 43% FRL track the district average.
• Watch-outs: flood insurance adds $460/mo; HOA is 21% of rent.
• Market conditions: 72 active listings in the ZIP; 4,156 units permitted in Charleston County in 2024 (857 in 5+ unit buildings).
• Charleston County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 20y ago 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.
• By year 5, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 8→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.6% vs local median 1.5% in Folly Beach — 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.

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 157 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.