1 12th Ave

Isle of Palms, SC 29451

$1,800,000D

3 bd · 3.0 ba · 1,504 sqft · Built 1978 · MultiFamily · Active · 115 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $11,543/mo
• Mortgage (P&I): −$9,439
• Tax + insurance: −$1,688
• HOA: −$0
• Vac / Maint / Mgmt: −$2,424
• Net cashflow: $-2,009/mo
• Annual: $-24,106/yr
• Cap rate: 5.24%
• Cash-on-cash: -3.77%
• DSCR: 0.83
• 1% rule: 0.64%
• Cash to close: $504,000

Investor read

• This is a 2×1bd/1.0ba + 1×2bd/1.0ba units multifamily listed at $1.80M.
• At list price, monthly cash flow is $-2k ($-24k/yr) — negative. Per door: $-670/mo.
• To cash-flow at today's rent, offer at most $1.45M (19.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.15M (35.9% below list).
• It's been on market 115 days — a 9% lower offer ($1.64M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.15M (35.9% below list) — sets the bar for 1% rule.
• In year one you build about $136k of equity ($12k loan paydown + $123k appreciation (6.8% local appreciation)).
• Location reads 61/100 on livability (#217 in SC) — a middle-class / working-renter tenant base. Strengths: employment A+, crime A-; Watch: housing C-, amenities F, commute F.
• Charleston 01 (urban): math 48% / reading 53% proficiency, ranked #7 of 80 in SC (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Sullivan'S Island Elementary (math 88% / reading 81%, grade A+, #2 of 597 statewide, top 0%, 475 students, 9% FRL); Moultrie Middle (math 68% / reading 74%, grade A, #6 of 229 statewide, top 2%, 1,119 students, 22% FRL); Wando High (math 81% / reading 95%, grade A, #6 of 196 statewide, top 3%, 2,596 students, 19% FRL) — zoned schools average 17% FRL vs 44% district-wide (28 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 81% at this address vs 50% district-wide (+31 pts) — the actual schools serving this property are materially stronger than the Charleston 01 average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 121 active listings in the ZIP; 1 comparable units currently listed for rent nearby; high-income renter base; 4,156 units permitted in Charleston County in 2024 (857 in 5+ unit buildings).
• Charleston County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 20y 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 $375k; list at $1.80M implies a 380% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$217k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 115 days. Have you received any prior offers? Is the seller open to a 36% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.