516 Misty Bluff Cir

Charleston, SC 29450

$525,000F

3 bd · 2.0 ba · 1,763 sqft · Built 2023 · SingleFamily · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,995/mo
• Mortgage (P&I): −$2,753
• Tax + insurance: −$367
• HOA: −$110
• Vac / Maint / Mgmt: −$629
• Net cashflow: $-865/mo
• Annual: $-10,374/yr
• Cap rate: 4.32%
• Cash-on-cash: -7.06%
• DSCR: 0.69
• 1% rule: 0.57%
• Cash to close: $147,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $525k.
• At list price, monthly cash flow is $-865 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $372k (29.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $300k (43.0% below list).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $300k (43.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.1%/yr); year-one equity from $4k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#22 in SC, #3,336 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, housing A+, health & safety A+; Watch: crime D+, commute F, cost of living D-.
• Berkeley 01 (suburban): math 35% / reading 48% proficiency, ranked #30 of 80 in SC (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Cainhoy Elementary (math 2% / reading 12%, grade F, #594 of 597 statewide, top 100%, 154 students, 100% FRL); Philip Simmons Middle (math 31% / reading 48%, grade F, #82 of 229 statewide, top 37%, 428 students, 35% FRL); Philip Simmons High (math 42% / reading 92%, grade B, #73 of 196 statewide, top 41%, 771 students, 21% FRL) — zoned schools at 52% FRL track the district average.
• Market conditions: 67 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 3,183 units permitted in Berkeley County in 2024 (580 in 5+ unit buildings).
• Berkeley County population projected at +48% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 3y 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.
• Current owner paid $456k; 15% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 4.3% vs local median 2.4% in Charleston — 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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?
• 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.