Is 836 Palm Frond Way NW in Calabash, NC a good investment?

CashFlowRE grades it D with a 6.0% cap rate and $-50/mo modeled cash flow at a $234,990 list price. See the full underwriting and recommended offer on the page.

What is the cap rate for 836 Palm Frond Way NW?

The modeled cap rate is 6.0% — annual NOI divided by price, using CashFlowRE's rent and expense estimates.

What would this property rent for?

Estimated market rent is $2,228/month, from CashFlowRE's rent model.

D Composite 43.29

Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

Cash flow +12.1/30.0
ARV discount +8.1/15.0
Condition / age +4.8/5.0
Schools +4.7/10.0
1% rule +4.5/10.0
DSCR +3.6/10.0
Livability +3.1/5.0
Rent growth +2.5/5.0
Appreciation +0.0/10.0

$234,990

836 Palm Frond Way NW · Calabash, NC 28467

3 bd · 2.5 ba · 1,734 sqft · Townhouse · 112 Days on market

Built 2026 Excellent condition 1,786 sqft lot Garage $136/sqft · at area comps Est $238k · at est. $186/mo HOA · 8% of rent

🖨 Deal sheet (PDF) 📄 Offer letter ✓ Due diligence

Listing remarks

Welcome to the Filmore plan in the desirable Calabash Palms community, perfectly situated in scenic Calabash, North Carolina. This thoughtfully designed 2-story townhouse offers a comfortable blend of style and function with 3 bedrooms, including a main-level primary suite, 2.5 baths, and a 1-car garage -- all for an amazing price! Step inside to discover an open-concept layout ideal for both relaxing and entertaining. The primary suite on the main floor provides added convenience and privacy, while two additional bedrooms and a 1 full bath upstairs offer space for family or guests.

Key facts

Modern kitchen
Open-concept layout
$186 HOA

What this means for you Summary

Snapshot

This is a 3-bed/2.5-bath townhouse listed at $235k. Condition is rated excellent.

Deal economics

At list price, monthly cash flow is $-50 ($-601/yr) — negative.
To cash-flow at today's rent, offer at most $228k (3.1% below list).
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $223k (5.2% below list).
Recommended offer: $214k (9.0% below list) — sets the bar for market timing.
Cap rate 6.0% vs local median 3.9% in Calabash — 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.

Location & tenants

Location reads 61/100 on livability (#487 in NC) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: health & safety D, amenities F, commute F.
Brunswick County Schools (rural): math 45% / reading 47% proficiency, ranked #82 of 178 in NC (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Zoned schools: Jessie Mae Monroe Elementary (math 43% / reading 41%, grade F, #633 of 1,410 statewide, top 48%, 394 students, 99% FRL); Shallotte Middle (math 40% / reading 50%, grade D, #160 of 475 statewide, top 35%, 674 students, 100% FRL); West Brunswick High (math 50% / reading 56%, grade C-, #281 of 535 statewide, top 53%, 1,526 students, 100% FRL) — zoned schools average 100% FRL vs 53% district-wide (46 pts higher); higher-poverty schools than district average — tighter screening recommended.
Market conditions: 972 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals leasing fast (median 6d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 6,112 units permitted in Brunswick County in 2024 (990 in 5+ unit buildings).
This rent runs 35% of the median local income ($75k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
Brunswick County population projected at +36% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

It's been on market 112 days — a 9% lower offer ($214k) is reasonable based on typical stale-listing flexibility.
2 sale attempts; this cycle's ask has dropped $20k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Recommended offer $213,840 (9.0% below list)

Questions for the 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 112 days. Have you received any prior offers? Is the seller open to a 9% 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?
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.
Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
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.
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.

Investment metrics

1% rule: 0.95% ✗
Cap rate: 6.04%
Cash-on-cash: -0.91%
DSCR: 0.96
GRM: 8.8

CMA / ARV

ARV (median comp): $238,251
List price: $234,990
Delta: -1.37%
Verdict: FAIR
Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
729 NW Palm Frond Way #12	0.12mi	3/2.5	1,734 (0%)	2mo	$244,990	$141	93
826 NW Palm Frond Way #38	0.02mi	3/3.5	1,734 (0%)	3mo	$234,990	$136	92
727 Palm Frond Way #11	0.13mi	3/2.5	1,734 (0%)	3mo	$244,990	$141	91
727 Palm Frond Way NW	0.13mi	3/2.5	1,734 (0%)	3mo	$244,990	$141	91
723 NW Palm Frond Way #9	0.14mi	3/2.5	1,734 (0%)	4mo	$250,000	$144	90
729 Palm Frond Way NW	0.12mi	3/2.5	1,704 (-2%)	2mo	$244,990	$144	90
816 Palm Frond Way NW	0.04mi	3/3.5	1,734 (0%)	5mo	$244,990	$141	90
816 Palm Frond Way #41	0.04mi	3/3.5	1,734 (0%)	5mo	$244,990	$141	90
826 Palm Frond Way NW	0.02mi	3/3.5	1,704 (-2%)	3mo	$234,990	$138	90
814 NW Palm Frond Way #42	0.04mi	3/3.5	1,734 (0%)	5mo	$244,991	$141	90
814 Palm Frond Way NW	0.04mi	3/3.5	1,704 (-2%)	5mo	$244,990	$144	87
723 Palm Frond Way NW	0.14mi	3/3.5	1,704 (-2%)	4mo	$250,000	$147	84

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

IRR: -17.7%
Equity multiple: 0.38×
Total profit: $-41,120
Equity at exit: $35,038

10-year hold

IRR: -9.7%
Equity multiple: 0.40×
Total profit: $-39,312
Equity at exit: $20,318

Cash invested: $65,797 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

Overall (STATE): 85 Strongly Landlord-Friendly
State North Carolina: 85 Strongly Landlord-Friendly · R+3
County: — inherits STATE
City: — inherits STATE

10-day notice; preempted; landlord-favorable but court speed varies.

Methodology + full state rankings →

Buyer's market Market conditions within 1.0 mi — comparable homes for sale

Active competition Active MLS

For sale now: 26 active · 8 under contract
Months of supply: 13.0 mo (8%/mo absorbed)
Median asking: $254,990 ($147/sqft)
Median days on market: 54 d
This list price: lowest-priced of the active set
ARV vs active asking: -6.6% vs current asking $/sqft

Closed sales set the value; these active listings set current market conditions and a practical price ceiling.

ZIP-level market 28467

Home prices YoY: -33.7%
Active inventory: 972
Price-to-rent: 8.8×

Monthly cashflow live

Estimated rent: $2,228 high interval (Pro) →
Mortgage (P&I): −$1,232
Tax est. 1.5%: −$294 /mo · $3,525/yr
Insurance: −$98
HOA: −$186
Lot rent: −$0
Vacancy / Maint / Mgmt: −$468
Net cashflow: $-50

Break-even live

Break-even rent $2,291

Max offer price $227,744

Occupancy floor 97%

Sensitivity live

Price	-10% $112	-5% $31	+0% $-50	+5% $-131	+10% $-212
Rent	-10% $-226	-5% $-138	+0% $-50	+5% $38	+10% $126
Rate	-1.0pp $68	-0.5pp $10	base $-50	+0.5pp $-111	+1.0pp $-173

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

Down payment: $58,748
Closing costs: $7,050
Club membership (one-time): —
Reserves months: —
Total cash needed: —

Loan-product check · same deal, 3 products live

Conventional

25% down · 7.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Personal DTI + credit; lowest rate.

DSCR

20% down · 8.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

No personal income docs; deal must DSCR.

Hard money

10% down · 12.0% · 12mo

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Short-term bridge; refi at stabilization.

Rent comps 8 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
495 Forthlin Dr NW Carolina Shores, NC	3.0	2.0	1818	$2,400	$1.32	6d	1	0.40mi
692 Pickering Dr NW Calabash, NC	3.0	2.0	1326	$1,900	$1.43	6d	1	0.45mi
3021 Siskin Dr NW Calabash, NC	2.0–3.0	2.0	1433	$2,314	$1.61	0d	19	0.52mi
1204 Calabash Station Blvd NW Ocean Isle Beach, NC	3.0	2.0	1811	$2,200	$1.21	119d	1	0.54mi
2042 Parow Ln NW Calabash, NC	3.0	2.5	1680	$1,800	$1.07	109d	1	1.12mi
2033 Wild Indigo CIR NW Calabash, NC	3.0	3.0	1457	$1,775	$1.22	119d	1	1.12mi
2084 Northwest Dr Unit E Carolina Shores, NC	3.0	2.5	1634	$1,850	$1.13	2d	1	1.16mi
31 Quaker Ridge Dr Calabash, NC	2.0–3.0	2.0	1411	$2,292	$1.62	6d	41	1.46mi

Property features AI

Finance

HOA & community: Homeowners associationAnnual association fee of $2,232 (approximately $186/month)Association amenities include dog park, grounds maintenance, management, and trash service

Exterior

Parking: Attached garage (1 garage space)Garage faces frontGarage with door openerAdditional parking on siteOff-street parking
Security: Smoke detector(s)
Utilities: Public waterUnderground utilities
Home design: TownhouseTwo levels (2-story)Entry level 1New constructionResidential property
Construction: Vinyl siding and frame constructionSlab foundationHome warranty includedBuilt recently (new construction)
Exterior features: Covered patioPatioFront porchNo fencingShingle roofIrrigation equipmentKennel / dog runHas a view

Interior

Kitchen: Self-cleaning ovenRange / Electric rangeDishwasherDisposalElectric water heater
Bedrooms: Bedrooms count not provided
Flooring: Carpet
Bathrooms: 2 full bathrooms1 half bathroom
Heating & cooling: Heat pump heatingElectric heatingCentral air conditioningZoned coolingHeat pump cooling
Interior features: Master suite located on the main levelWalk-in closet(s)Kitchen islandWired for dataInsulated windowsUnfurnished
Laundry & utility: Washer hookupLaundry closet

Listing history 50 events

2026-09-24

days on market $234,990 Active 112 DOM
2026-09-23

days on market $234,990 Active 111 DOM
2026-09-22

days on market $234,990 Active 110 DOM
2026-09-21

days on market $234,990 Active 109 DOM
2026-09-20

days on market $234,990 Active 108 DOM
2026-09-19

days on market $234,990 Active 107 DOM
2026-09-18

days on market $234,990 Active 106 DOM
2026-09-17

days on market $234,990 Active 105 DOM
2026-09-16

days on market $234,990 Active 104 DOM
2026-09-15

days on market $234,990 Active 103 DOM
2026-09-15

price $234,990 Active 102 DOM
2026-09-14

days on market $244,990 Active 102 DOM
2026-09-13

days on market $244,990 Active 101 DOM
2026-09-12

days on market $244,990 Active 100 DOM
2026-09-11

days on market $244,990 Active 99 DOM
2026-09-05

days on market $244,990 Active 93 DOM
2026-09-04

days on market $244,990 Active 92 DOM
2026-09-03

days on market $244,990 Active 91 DOM
2026-08-31

days on market $244,990 Active 88 DOM
2026-08-30

days on market $244,990 Active 87 DOM
2026-08-29

days on market $244,990 Active 86 DOM
2026-08-28

days on market $244,990 Active 85 DOM
2026-08-27

days on market $244,990 Active 84 DOM
2026-08-25

days on market $244,990 Active 82 DOM
2026-08-24

days on market $244,990 Active 81 DOM
2026-08-23

days on market $244,990 Active 80 DOM
2026-08-22

days on market $244,990 Active 79 DOM
2026-08-21

days on market $244,990 Active 78 DOM
2026-08-20

days on market $244,990 Active 77 DOM
2026-08-19

days on market $244,990 Active 76 DOM
2026-08-18

days on market $244,990 Active 75 DOM
2026-08-17

days on market $244,990 Active 74 DOM
2026-08-16

days on market $244,990 Active 73 DOM
2026-08-15

days on market $244,990 Active 72 DOM
2026-08-14

days on market $244,990 Active 71 DOM
2026-08-13

pricedays on market $244,990 Active 70 DOM
2026-08-12

days on market $247,990 Active 69 DOM
2026-08-11

days on market $247,990 Active 68 DOM
2026-08-10

days on market $247,990 Active 67 DOM
2026-08-09

days on market $247,990 Active 66 DOM
2026-08-08

days on market $247,990 Active 65 DOM
2026-08-07

days on market $247,990 Active 64 DOM
2026-08-06

days on market $247,990 Active 63 DOM
2026-08-05

days on market $247,990 Active 62 DOM
2026-08-04

days on market $247,990 Active 61 DOM
2026-08-03

days on market $247,990 Active 60 DOM
2026-07-31

days on market $247,990 Active 57 DOM
2026-07-30

price $247,990 Active 55 DOM
2026-07-29

days on market $249,990 Active 55 DOM
2026-07-27

days on market $249,990 Active 53 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Nearby sold comps map

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Walkable amenities ~0.75 mi

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Taxation est. · year 1

Rental income: $26,733
− Mortgage interest: −$13,163
− Property taxes: −$3,525
− Insurance: −$1,175
− Repairs & maintenance: −$2,139
− Management: −$2,139
− HOA: −$2,232
− Depreciation: −$6,836
Taxable loss: −$4,476

Your marginal tax rate % combined federal + state — saved on this device

Est. tax savings @ 24.0%: +$1,074
After-tax cash flow: $473/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 13 photos

Excellent 95/100 None rehab

This move-in-ready townhouse in Calabash Palms offers a blend of style and function, with a modern design and excellent condition. The home is ready for immediate occupancy and can be further enhanced with minor updates for maximum value.

Value-add opportunities

Both Landscaping and curb appeal improvements — Enhances the home's aesthetic and appeal ↑
Both Interior paint touch-ups — Freshens the interior and enhances curb appeal ↑

F Composite school gradezoned avg 47/100

Zoned Schools

Elementary Jessie Mae Monroe Elementary F NC #633/1,410 Nat'l #17,861/41,679 Middle Shallotte Middle D NC #160/475 Nat'l #4,622/14,009 High West Brunswick High C- NC #281/535 Nat'l #4,893/17,239

Schools (NCES district)

District: Brunswick County Schools
NCES district ID: 3700420
Math proficiency: 45% ▲ 4.00%
Reading proficiency: 47% ▲ 4.00%
Median HH income: $47,494
Composite: 39.23/100
National rank: #4011
State rank: #82 of 178 in NC

C Composite livability gradescore 61/100

Livability — Calabash

Score: 61/100
State rank: #487
US rank: #17866

Category grades

Amenities F Commute F Cost of living A+ Crime A Employment F Housing A+ Health & safety D User ratings D

Schools grade is shown separately in the Schools card above.

Census & demographics

County: Brunswick County · 152,111 people
Metro: Myrtle Beach-Conway-North Myrtle Beach, SC-NC
Population (ZIP): 13,313
Household income: $75,341
Rent vs Own: 10.4% rent · 89.6% own
Severe rent burden: 14% of renters

Population outlook (Brunswick County) Hauer SSP2

Today (2025): 152,111 people
By 2030: 165,705 · +8.9%
By 2040: 188,494 · +23.9%
By 2050: 206,228 · +35.6%
By 2075: 237,876 · +56.4%
By 2100: 251,451 · +65.3%

Race, ethnicity, and origin ACS 2023

Neighborhood character: Predominantly White (90%)
Race & ethnicity: White 90% Two or more races 4% Black 3% Hispanic / Latino 2%
Common ancestry: Slovak 5% Romanian 5% Lithuanian 3%
Foreign-born: 3% · Canada
Languages at home: 98% English-only · Spanish 1%

Political lean MEDSL · Brunswick

2024 margin: Strong R (+24.9) · D 37.2% · R 62.0%
2008→2024 swing: -6.9pp toward R · 2008: -17.9pp · 2024: -24.9pp
All cycles: 2024: R+24.9 2020: R+25.0 2016: R+28.7 2012: R+22.2 2008: R+17.9

Not yet ingested

Civics: —

Market trends

HPI YoY: ▼ -67.90%
Current HPI: 133.7186
Rent YoY: —
Metro: Myrtle Beach-Conway-North Myrtle Beach, SC-NC
State GDP YoY: ▲ 3.28%
F500 in state: 26

Industry mix (Fortune 500 HQ in NC)

Industry	F500 HQs	Revenue
Financial Services	2	$213B
#17 Bank of America Charlotte $192.4B #166 Truist Financial Charlotte $20.5B
Retail	2	$95B
#52 Lowe's Mooresville $83.7B #337 Advance Auto Parts Raleigh $11.2B
Industrial Conglomerate	1	$38B
#114 Honeywell International Charlotte $37.9B
Metals / Steel	1	$35B
#121 Nucor Charlotte $35.4B
Utilities	1	$30B
#133 Duke Energy Charlotte $29.9B
Industrial Machinery	1	$19B
#182 Trane Technologies Davidson $18.9B

Price history

+0.0% since first listed

3 events — show timeline

2026-06-05 Listing Removed — Hive MLS
2026-06-04 Listed $254,990 Hive MLS
2026-03-26 Listed $254,990 Hive MLS

Cash-flow waterfall

monthly

Sold comps — $/sqft

last 12 mo · ≤1 mi

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