185 Waterside Dr Unit 20%share of Walnut 5

Blowing Rock, NC 28605

$139,900B-

2 bd · 2.0 ba · 1,400 sqft · Built 1997 · Condo · Active · 92 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,853/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$289
• HOA: −$120
• Vac / Maint / Mgmt: −$389
• Net cashflow: $322/mo
• Annual: $3,861/yr
• Cap rate: 9.53%
• Cash-on-cash: 11.56%
• DSCR: 1.51
• 1% rule: 1.32%
• Cash to close: $39,172

Investor read

• This is a 2-bed/2.0-bath condo listed at $140k. Condition is rated good.
• At list price, monthly cash flow is $322 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $140k).
• It's been on market 92 days — a 9% lower offer ($127k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $127k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $967 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#140 in NC) — a middle-class / working-renter tenant base. Strengths: employment A+, health & safety A+; Watch: amenities D, housing D, commute F.
• Watauga County Schools (rural): math 53% / reading 59% proficiency, ranked #47 of 178 in NC (top 26%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Blowing Rock Elementary (math 69% / reading 74%, grade A-, #81 of 1,410 statewide, top 6%, 431 students, 19% FRL); Watauga High (math 76% / reading 74%, grade A-, #91 of 535 statewide, top 17%, 1,272 students, 33% FRL).
• Zoned-school proficiency averages 73% at this address vs 56% district-wide (+17 pts) — the actual schools serving this property are materially stronger than the Watauga County Schools average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: flood insurance adds $56/mo.
• Market conditions: 194 active listings in the ZIP; 296 units permitted in Watauga County in 2024 (20 in 5+ unit buildings).
• Watauga County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 92 days. Have you received any prior offers? Is the seller open to a 9% 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 A-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?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Slight wear visible on some cabinet doors.
• Minor: Bathroom wallpaper — Wallpaper appears slightly faded in some areas.
• Minor: Landscaping — Some areas of landscaping could benefit from freshening up for better curb appeal.