The Maddux II Plan

Powdersville, SC 29611

$239,990F

3 bd · 2.5 ba · 1,725 sqft · Built — · SingleFamily · Active · 127 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,971/mo
• Mortgage (P&I): −$1,786
• Tax + insurance: −$568
• HOA: −$0
• Vac / Maint / Mgmt: −$414
• Net cashflow: $-796/mo
• Annual: $-9,558/yr
• Cap rate: 3.49%
• Cash-on-cash: -10.02%
• DSCR: 0.55
• 1% rule: 0.58%
• Cash to close: $95,371

Investor read

• This is a 3-bed/2.5-bath single-family listed at $240k. Condition is rated good.
• At list price, monthly cash flow is $-796 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $225k (6.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $197k (17.9% below list).
• It's been on market 127 days — a 12% lower offer ($211k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $197k (17.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#110 in SC) — a middle-class / working-renter tenant base. Strengths: housing A+, cost of living A-, crime B+; Watch: amenities F, commute F.
• Anderson 01 (rural): math 58% / reading 60% proficiency, ranked #3 of 80 in SC (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Concrete Primary (843 students, 51% FRL); Powdersville Middle (math 54% / reading 59%, grade B, #21 of 229 statewide, top 9%, 756 students, 42% FRL); Powdersville High (math 77% / reading 90%, grade A, #16 of 196 statewide, top 8%, 999 students, 43% FRL).
• Market conditions: Rents rising (+1.7%/yr); 398 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals lingering (median 66d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; 1,255 units permitted in Anderson County in 2024 (0 in 5+ unit buildings).
• Anderson County population projected at +14% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At $1,971/mo this rent would consume 46% of the median local household income ($52k/yr) — very limited rent-growth headroom before tenants either downsize or default.

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 127 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• 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.