Capers Blade Plan

Kiawah Island, SC 29455

$1F

5 bd · 4.5 ba · 3,780 sqft · Built — · SingleFamily · Active · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,308/mo
• Mortgage (P&I): −$14,451
• Tax + insurance: −$4,593
• HOA: −$0
• Vac / Maint / Mgmt: −$695
• Net cashflow: $-16,430/mo
• Annual: $-197,166/yr
• Cap rate: -0.86%
• Cash-on-cash: -25.55%
• DSCR: -0.14
• 1% rule: 0.12%
• Cash to close: $771,574

Investor read

• This is a 5-bed/4.5-bath single-family listed at $1.
• At list price, monthly cash flow is $-16k ($-197k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $1).
• It's been on market 38 days — a 3% lower offer ($0) is reasonable based on typical stale-listing flexibility.
• Local home prices are declining (-3.0%/yr); year-one equity from $19k of loan paydown is wiped out by about $83k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#154 in SC) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+; Watch: housing C-, amenities F, commute F.
• Charleston 01 (urban): math 48% / reading 53% proficiency, ranked #7 of 80 in SC (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Montessori Community School (math 67% / reading 77%, grade A-, #26 of 597 statewide, top 5%, 273 students, 24% FRL); Haut Gap Middle (math 39% / reading 44%, grade F, #68 of 229 statewide, top 31%, 444 students, 100% FRL); St. Johns High (math 42% / reading 72%, grade C, #120 of 196 statewide, top 64%, 387 students, 100% FRL) — zoned schools average 75% FRL vs 44% district-wide (30 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 4133430.0% of price.
• Market conditions: Rents rising (+3.0%/yr); 586 active listings in the ZIP; high-income renter base; 4,156 units permitted in Charleston County in 2024 (857 in 5+ unit buildings).
• Charleston County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate -0.9% vs local median 0.0% in Kiawah Island — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 33% of the median local income ($121k/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 38 days. Have you received any prior offers? Is the seller open to a 5% concession, seller financing, or rate buy-down credit?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.