105 Magwood Dr

Summerville, SC 29485

$620,000C

8 bd · 6.0 ba · — sqft · Built 1984 · MultiFamily · Active · 378 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,055/mo
• Mortgage (P&I): −$3,251
• Tax + insurance: −$1,033
• HOA: −$0
• Vac / Maint / Mgmt: −$1,482
• Net cashflow: $1,289/mo
• Annual: $15,465/yr
• Cap rate: 8.79%
• Cash-on-cash: 8.91%
• DSCR: 1.40
• 1% rule: 1.14%
• Cash to close: $173,600

Investor read

• This is a 4 × 2-bed/1.5-bath units multifamily listed at $620k.
• At list price, monthly cash flow is $1k ($15k/yr) — positive. Per door: $322/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $620k).
• It's been on market 378 days — a 12% lower offer ($546k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $546k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#167 in SC) — a middle-class / working-renter tenant base. Strengths: housing A+, cost of living B+; Watch: amenities F, commute F, health & safety F.
• Dorchester 02 (suburban): math 40% / reading 55% proficiency, ranked #12 of 80 in SC (top 15%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Flowertown Elementary (math 41% / reading 48%, grade F, #226 of 597 statewide, top 40%, 853 students, 75% FRL); Gregg Middle (math 28% / reading 45%, grade F, #98 of 229 statewide, top 43%, 850 students, 76% FRL); Summerville High (math 60% / reading 92%, grade A-, #34 of 196 statewide, top 17%, 3,308 students, 59% FRL) — zoned schools average 70% FRL vs 36% district-wide (34 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+3.9%/yr); 691 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 1,199 units permitted in Dorchester County in 2024 (0 in 5+ unit buildings).
• Dorchester County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 24y ago; this cycle's ask has dropped $130k (17%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $225k; list at $620k implies a 176% gain — meaningful room to come down on a strong offer.
• Cap rate 8.8% vs local median 3.9% in Summerville — 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 $7,055/mo this rent would consume 102% of the median local household income ($83k/yr) (locally 1302% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 378 days. Have you received any prior offers? Is the seller open to a 12% 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?
• 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?
• 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.