40 Folly Field Rd Unit E24 · Hilton Head Island, SC 29928

$350,000

2 bd · 2.0 ba · 888 sqft · Condo public records · 35 Days on market

Built 1980 $394/sqft · 16% below area Est $415k · 16% under

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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).

• ARV discount +14.5/15.0
• Cash flow +6.7/30.0
• Appreciation +6.6/10.0
• Schools +4.1/10.0
• 1% rule +3.3/10.0
• Rent growth +3.3/5.0
• Livability +3.2/5.0
• Condition / age +2.5/5.0
• DSCR +0.9/10.0

Listing remarks MLS

Nicely maintained 2-bedroom, 2-bath Tennis Villa located on the desirable 3rd floor at Hilton Head Beach & Tennis Resort. Top-floor location means no one above you, a feature both owners and guests appreciate for added privacy and quieter enjoyment. This villa has been a strong rental performer with a high number of repeat guests, making it an excellent opportunity for investment, second home, or personal getaway. Conveniently located near the beach, pools, tennis, pickleball, dining, and resort amenities, Hilton Head Beach & Tennis remains one of the island's most popular ocean-oriented communities. Enjoy easy island living in a resort setting close to shopping, dining, golf, and bike paths.

Key facts

• Near tennis
• Near pickleball
• Near pools

Tags

• TOP FLOOR LOCATION
• STRONG RENTAL PERFORMER
• CLOSE TO BEACH
• NEAR POOLS
• NEAR TENNIS
• NEAR PICKLEBALL

Property features AI

Finance

• Other: Pets not allowed
• HOA & community: Association covers management, common areas, cable TV, insurance, internet, grounds maintenance, structure maintenance, pest control, reserve fund, sewer, trash, water, and high-speed internet; Community amenities include beach access/rights, fitness center, golf course, barbecue area, playground, pickleball, pool, restaurant, guard, tennis courts, trails, and cable TV

Exterior

• Parking: Unassigned parking
• Security: Security guard
• Utilities: Public water
• Home design: 3-story property; Board-and-batten siding
• Construction: Board and batten siding construction
• Exterior features: Balcony; Patio; Free-form community pool

Interior

• Kitchen: Dishwasher; Range; Refrigerator
• Flooring: Luxury vinyl; Luxury vinyl plank
• Bathrooms: 2 full bathrooms
• Heating & cooling: Central heating (electric); Central air; Heat pump
• Interior features: Furnished; Ceiling fan(s)
• Laundry & utility: Shared laundry in common area

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath condo listed at $350k.

Deal economics

• At list price, monthly cash flow is $-562 ($-7k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $292k (16.6% below list).
• Recommended offer: $292k (16.6% below list) — sets the bar for 1% rule.
• Cap rate 4.4% 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.

Location & tenants

• 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.
• Market conditions: Rents rising (+3.2%/yr); 838 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,824 units permitted in Beaufort County in 2024 (618 in 5+ unit buildings).
• This rent runs 36% of the median local income ($98k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• In year one you build about $14k of equity ($2k loan paydown + $11k appreciation (3.2% local appreciation)).
• Beaufort County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 3, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 35 days — a 3% lower offer ($340k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts 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 $104k; list at $350k implies a 237% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: HOA is 24% of rent.

Recommended offer $291,960 (16.6% below list)

Questions for the listing agent

1. 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?
2. It's been on market 35 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
3. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
4. 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?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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?
8. 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.
9. 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.
10. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 0.83% ✗
• Cap rate: 4.37%
• Cash-on-cash: -6.88%
• DSCR: 0.69
• GRM: 10.0

CMA / ARV

• ARV (median comp): $414,990
• List price: $350,000
• Delta: -15.66%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Projected returns pro-forma

3.21% appreciation · 3.23% rent growth · sell at horizon

5-year hold

• IRR: 2.0%
• Equity multiple: 1.11×
• Total profit: $11,225
• Equity at exit: $161,479

10-year hold

• IRR: 5.6%
• Equity multiple: 1.89×
• Total profit: $86,843
• Equity at exit: $252,096

Cash invested: $98,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 90 Strongly Landlord-Friendly
• State South Carolina: 90 Strongly Landlord-Friendly · R+6
• County: — inherits STATE
• City: — inherits STATE

5-day notice; preempted; landlord-favorable.

Methodology + full state rankings →

ZIP-level market 29928

• Home prices YoY: 1.3%
• Rents YoY: 3.2%
• Active inventory: 838
• Price-to-rent: 10.0×

Monthly cashflow live

• Estimated rent: $2,920 high
• Mortgage (P&I): −$1,835
• Tax from tax record: −$190 /mo · $2,282/yr
• Insurance: −$146
• HOA est. from 12 same-building comps: −$697
• Vacancy / Maint / Mgmt: −$613
• Net cashflow: $-562

Break-even live

Break-even rent $3,631

Max offer price $250,723

Occupancy floor —

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: $87,500
• Closing costs: $10,500
• Reserves months: —
• Total cash needed: —

Rent comps 8 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3 Burkes Beach Rd Unit B Hilton Head Island, SC	2.0	2.0	1100	$2,500	$2.27	13d	1	0.46mi
663 William Hilton Pkwy #2121 Hilton Head Island, SC	2.0	2.0	900	$2,200	$2.44	43d	1	0.96mi
96 Mathews Dr #87 Hilton Head Island, SC	2.0	2.0	1000	$2,500	$2.50	43d	1	1.03mi
96 Mathews Dr Hilton Head Island, SC	2.0	2.0–2.5	1000	$2,500	$2.50	21d	2	1.05mi
96 Mathews Dr Hilton Head Island, SC	2.0	2.0	1012	$2,400	$2.37	13d	2	1.05mi
662 William Hilton Pkwy Unit 1468397P Hilton Head Island, SC	2.0	2.0	828	$2,632	$3.18	21d	1	1.10mi
55 Gardner Dr Hilton Head Island, SC	1.0–3.0	1.0–2.0	1175	$2,902	$2.47	13d	9	1.29mi
112 Union Cemetery Rd Hilton Head Island, SC	2.0	2.0	1025	$2,125	$2.07	13d	1	1.49mi

HOA detail condo

• Monthly dues: $0 · $0/yr
• Likely covers: pool
• Assessments: None detected in remarks — confirm with the listing agent.

Listing history 21 events

1. 2026-06-18
   days on market $350,000 Active 35 DOM
2. 2026-06-17
   days on market $350,000 Active 34 DOM
3. 2026-06-16
   days on market $350,000 Active 33 DOM
4. 2026-06-15
   days on market $350,000 Active 32 DOM
5. 2026-06-14
   days on market $350,000 Active 30 DOM
6. 2026-06-13
   days on market $350,000 Active 29 DOM
7. 2026-06-10
   days on market $350,000 Active 27 DOM
8. 2026-06-09
   days on market $350,000 Active 26 DOM
9. 2026-06-08
   days on market $350,000 Active 25 DOM
10. 2026-06-07
    days on market $350,000 Active 24 DOM
11. 2026-06-05
    days on market $350,000 Active 21 DOM
12. 2026-06-03
    days on market $350,000 Active 20 DOM
13. 2026-06-02
    days on market $350,000 Active 19 DOM
14. 2026-06-01
    days on market $350,000 Active 18 DOM
15. 2026-05-31
    days on market $350,000 Active 17 DOM
16. 2026-05-30
    listing id $350,000 Active 16 DOM
17. 2026-05-14
    listed $350,000 Active
18. 2026-05-13
    listed $350,000 Active 709-char remark

    Show marketing remark (709 chars)

    Nicely maintained 2-bedroom, 2-bath Tennis Villa located on the desirable 3rd floor at Hilton Head Beach & Tennis Resort. Top-floor location means no one above you, a feature both owners and guests appreciate for added privacy and quieter enjoyment. This villa has been a strong rental performer with a high number of repeat guests, making it an excellent opportunity for investment, second home, or personal getaway. Conveniently located near the beach, pools, tennis, pickleball, dining, and resort amenities, Hilton Head Beach & Tennis remains one of the island's most popular ocean-oriented communities. Enjoy easy island living in a resort setting close to shopping, dining, golf, and bike paths.

19. 2003-04-23
    soldstatus $104,000
20. 1991-04-03
    soldstatus $37,000
21. 1981-10-01
    soldstatus $64,900

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

Tax reassessment forecast SC · Resets to sale price

• Current annual tax: $2,282 · $190/mo
• Projected year-2 tax: $2,282 · $190/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Taxation est. · year 1

• Rental income: $35,035
• − Mortgage interest: −$19,605
• − Property taxes: −$2,282
• − Insurance: −$1,750
• − Repairs & maintenance: −$2,803
• − Management: −$2,803
• − HOA: −$8,364
• − Depreciation: −$10,182
• Taxable loss: −$12,754
• Est. tax savings @ 24.0%: +$3,061
• After-tax cash flow: $-3,683/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.

Schools (NCES district)

• District: Beaufort 01
• NCES district ID: 4501110
• Math proficiency: 42% ▼ -8.00%
• Reading proficiency: 51% ▲ 2.00%
• Median HH income: $57,430
• Composite: 40.56/100
• National rank: #3699
• State rank: #17 of 80 in SC

Livability — Hilton Head Island

• Score: 64/100
• State rank: #157
• US rank: #14648

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Hilton Head Island, SC
• County: Beaufort County · 163,770 people
• City population: 40,243
• Metro: Hilton Head Island-Bluffton, SC
• Population (ZIP): 15,785
• Household income: $97,576
• Rent vs Own: 16.7% rent · 83.3% own
• Severe rent burden: 216.0

Population outlook (Beaufort County) Hauer SSP2

• Today (2025): 211,915 people
• By 2030: 227,272 · +7.2%
• By 2040: 253,861 · +19.8%
• By 2050: 275,126 · +29.8%
• By 2075: 311,022 · +46.8%
• By 2100: 321,286 · +51.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (87%)
• Race & ethnicity: White 87% Hispanic / Latino 6% Two or more races 2% Black 2% Asian 1%
• Hispanic origin (detail): Mexican 3%
• Common ancestry: Lithuanian 4% Slovak 4% Romanian 4%
• Foreign-born: 9% · Canada, China
• Languages at home: 91% English-only · Spanish 5% French/Haitian/Cajun 1% Chinese 1%

Political lean MEDSL · Beaufort

• 2024 margin: R (+14.5) · D 42.1% · R 56.6% · Other 1.2%
• 2008→2024 swing: -3.7pp toward R · 2008: -10.8pp · 2024: -14.5pp
• All cycles: 2024: R+14.5 2020: R+10.0 2016: R+14.3 2012: R+17.5 2008: R+10.8

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 3.21%
• Current HPI: 243.4136
• Rent YoY: ▲ 3.23%
• Metro: Hilton Head Island-Bluffton, SC
• State GDP YoY: ▲ 4.51%
• F500 in state: 2

Industry mix (Fortune 500 HQ in SC)

Industry	F500 HQs	Revenue
▸Packaging	1	$7B

Price history

+439.3% since first listed

5 events — show timeline

• 2026-05-14 Listed $350,000 RSMLS
• 2026-05-13 Listed $350,000 LRMLS
• 2003-04-23 Sold (Public Records) $104,000 Public Records
• 1991-04-03 Sold (Public Records) $37,000 Public Records
• 1981-10-01 Sold (Public Records) $64,900 Public Records

Property tax history

+4.3%/yr

Latest (2025): $2,282 · +1.5% YoY. Source: county tax records.