3 bd · 2.0 ba ·
1,300 sqft ·
Built 2000
· Condo
· Pending
· 225 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$4,050/mo
Mortgage (P&I)
−$2,386
Tax + insurance
−$825
HOA
−$600
Vac / Maint / Mgmt
−$851
Net cashflow
$-611/mo
Annual
$-7,333/yr
Cap rate
4.86%
Cash-on-cash
-5.13%
DSCR
0.77
1% rule
0.89%
Cash to close
$127,400
Investor read
This is a 3-bed/2.0-bath condo listed at $455k.
At list price, monthly cash flow is $-611 ($-7k/yr) — negative.
To cash-flow at today's rent, offer at most $367k (19.4% below list).
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $405k (11.0% below list).
It's been on market 225 days — a 12% lower offer ($400k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $367k (19.4% below list) — sets the bar for cash-flow.
In year one you build about $18k of equity ($3k loan paydown + $15k appreciation (3.2% local appreciation)).
Location reads 64/100 on livability (#157 in SC) — a middle-class / working-renter tenant base. Strengths: employment A+, crime A-; Watch: amenities F, commute F, cost of living F.
Beaufort 01 (town): math 42% / reading 51% proficiency, ranked #17 of 80 in SC (top 21%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Watch-outs: flood insurance adds $66/mo.
Market conditions: Rents rising (+3.2%/yr); 838 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 60% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,824 units permitted in Beaufort County in 2024 (618 in 5+ unit buildings).
Beaufort County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
3 sale attempts; this cycle's ask has dropped $34k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
By year 3, paydown + projected appreciation supports a ~$44k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
Climate carrying-cost: severe flood risk; severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
Cap rate 4.9% vs local median 3.0% in Hilton Head Island — 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.
At $4,050/mo this rent would consume 50% of the median local household income ($98k/yr) (locally 216% of renters already pay >50% of income on rent) — 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 225 days. Have you received any prior offers? Is the seller open to a 19% 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?
Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
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 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?
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· Data 3 weeks agocashflowre.app · 2026-05-29