35937 Clover Ter

Round Hill, VA 20141

$475,000D-

4 bd · 2.5 ba · 1,760 sqft · Built 2001 · Townhouse · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,817/mo
• Mortgage (P&I): −$2,491
• Tax + insurance: −$505
• HOA: −$140
• Vac / Maint / Mgmt: −$802
• Net cashflow: $-120/mo
• Annual: $-1,439/yr
• Cap rate: 5.99%
• Cash-on-cash: -1.08%
• DSCR: 0.95
• 1% rule: 0.80%
• Cash to close: $133,000

Investor read

• This is a 4-bed/2.5-bath townhouse listed at $475k.
• At list price, monthly cash flow is $-120 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $454k (4.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $382k (19.6% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $382k (19.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#107 in VA, #3,294 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Loudoun County Public School District (suburban): math 64% / reading 79% proficiency, ranked #7 of 131 in VA (top 5%) — strong family-tenant draw, lease renewals of 3-5y typical; only 12% free/reduced lunch — higher-income household profile.
• Zoned schools: Round Hill Elementary (math 77% / reading 77%, grade A, #171 of 1,108 statewide, top 17%, 586 students, 12% FRL); Harmony Middle (math 50% / reading 77%, grade B+, #128 of 342 statewide, top 39%, 1,083 students, 12% FRL) — zoned schools at 12% FRL track the district average.
• Market conditions: 34 active listings in the ZIP; high-income renter base; 3,317 units permitted in Loudoun County in 2024 (1,818 in 5+ unit buildings).
• Loudoun County population projected at +65% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 7 sale attempts since 17y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.0% vs local median 2.3% in Round Hill — 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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.