6226 Hermsley Rd

Charlotte, NC 28278

$650,000F

5 bd · 4.5 ba · 4,594 sqft · Built 2006 · SingleFamily · Pending · 61 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,189/mo
• Mortgage (P&I): −$3,409
• Tax + insurance: −$637
• HOA: −$67
• Vac / Maint / Mgmt: −$670
• Net cashflow: $-1,593/mo
• Annual: $-19,121/yr
• Cap rate: 3.35%
• Cash-on-cash: -10.51%
• DSCR: 0.53
• 1% rule: 0.49%
• Cash to close: $182,000

Investor read

• This is a 5-bed/4.5-bath single-family listed at $650k.
• At list price, monthly cash flow is $-2k ($-19k/yr) — negative.
• To cash-flow at today's rent, offer at most $369k (43.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $319k (50.9% below list).
• It's been on market 61 days — a 6% lower offer ($611k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $319k (50.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $20k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#26 in NC, #2,502 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, housing A+; Watch: crime F.
• Charlotte-Mecklenburg Schools (urban): math 42% / reading 46% proficiency, ranked #85 of 178 in NC (top 48%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Berewick Elementary (math 26% / reading 30%, grade F, #1,022 of 1,410 statewide, top 73%, 702 students, 49% FRL); Kennedy Middle (math 33% / reading 41%, grade F, #262 of 475 statewide, top 57%, 923 students, 45% FRL); Olympic High School (math 50% / reading 55%, grade C-, #287 of 535 statewide, top 54%, 1,729 students, 41% FRL) — zoned schools at 45% FRL track the district average.
• Market conditions: Rents soft (-0.9%/yr); 445 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 11,969 units permitted in Mecklenburg County in 2024 (5,377 in 5+ unit buildings).
• Mecklenburg County population projected at +53% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: moderate wind risk, 25% chance of damaging wind over 30y; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 31% of the median local income ($125k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 61 days. Have you received any prior offers? Is the seller open to a 51% 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?