7868/7864 Kinglet Rd

Casar, NC 28612

$120,000D

2 bd · 0.5 ba · 800 sqft · Built 1985 · Townhouse · Active · 270 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $847/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$100
• HOA: −$83
• Vac / Maint / Mgmt: −$178
• Net cashflow: $-144/mo
• Annual: $-1,727/yr
• Cap rate: 4.85%
• Cash-on-cash: -5.14%
• DSCR: 0.77
• 1% rule: 0.71%
• Cash to close: $33,600

Investor read

• This is a 2-bed/0.5-bath townhouse listed at $120k.
• At list price, monthly cash flow is $-144 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $95k (21.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $85k (29.5% below list).
• It's been on market 270 days — a 12% lower offer ($106k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $85k (29.5% below list) — sets the bar for 1% rule.
• In year one you build about $13k of equity ($830 loan paydown + $12k appreciation (10.0% local appreciation)).
• Location reads 59/100 on livability (#531 in NC) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Burke County Schools (rural): math 43% / reading 47% proficiency, ranked #89 of 178 in NC (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: George Hildebrand Elementary (math 37% / reading 42%, grade F, #694 of 1,410 statewide, top 53%, 318 students, 81% FRL); East Burke High (math 67% / reading 52%, grade C+, #216 of 535 statewide, top 43%, 879 students, 64% FRL) — zoned schools average 72% FRL vs 52% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 155 active listings in the ZIP; 422 units permitted in Burke County in 2024 (94 in 5+ unit buildings).
• Burke County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask is 4% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $48k; list at $120k implies a 150% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 270 days. Have you received any prior offers? Is the seller open to a 29% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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?