3 bd · 2.5 ba ·
1,305 sqft ·
Built 2026
· Townhouse
· Active
· 66 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$1,723/mo
Mortgage (P&I)
−$1,049
Tax + insurance
−$333
HOA
−$0
Vac / Maint / Mgmt
−$362
Net cashflow
$-21/mo
Annual
$-249/yr
Cap rate
6.17%
Cash-on-cash
-0.44%
DSCR
0.98
1% rule
0.86%
Cash to close
$55,997
Investor read
This is a 3-bed/2.5-bath townhouse listed at $200k.
At list price, monthly cash flow is $-21 ($-249/yr) — negative.
To cash-flow at today's rent, offer at most $197k (1.5% below list).
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $172k (13.8% below list).
It's been on market 66 days — a 6% lower offer ($188k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $172k (13.8% below list) — sets the bar for 1% rule.
Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
Location reads 68/100 on livability (#83 in SC) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: amenities F, commute F, health & safety F.
Spartanburg 05 (suburban): math 45% / reading 51% proficiency, ranked #13 of 80 in SC (top 16%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Zoned schools: Duncan Elementary School of The Arts (math 30% / reading 37%, grade F, #362 of 597 statewide, top 61%, 689 students, 100% FRL); D. R. Hill Middle (math 28% / reading 38%, grade F, #116 of 229 statewide, top 51%, 702 students, 80% FRL); James F. Byrnes High (math 31% / reading 75%, grade C-, #140 of 196 statewide, top 72%, 2,217 students, 56% FRL) — zoned schools average 79% FRL vs 39% district-wide (39 pts higher); higher-poverty schools than district average — tighter screening recommended.
Market conditions: 222 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 3,129 units permitted in Spartanburg County in 2024 (40 in 5+ unit buildings).
Spartanburg County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
Climate carrying-cost: extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
Cap rate 6.2% vs local median 3.6% in Lyman — 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.
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 66 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
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?
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.
CashFlowRE · CFR-WC4DMNABB22V5V
· Data 6 days agocashflowre.app · 2026-05-29