324 Court St

Welch, WV 24801

$39,000B

3 bd · 3.0 ba · 1,728 sqft · Built 1930 · SingleFamily · Under Contract · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,242/mo
• Mortgage (P&I): −$205
• Tax + insurance: −$53
• HOA: −$0
• Vac / Maint / Mgmt: −$261
• Net cashflow: $724/mo
• Annual: $8,693/yr
• Cap rate: 28.58%
• Cash-on-cash: 79.61%
• DSCR: 4.54
• 1% rule: 3.19%
• Cash to close: $10,920

Investor read

• This is a 3-bed/3.0-bath single-family listed at $39k.
• At list price, monthly cash flow is $724 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $39k).
• It's been on market 37 days — a 3% lower offer ($38k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $38k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.6%/yr); year-one equity from $270 of loan paydown is wiped out by about $627 of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#126 in WV) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A-; Watch: schools F, amenities F, commute F.
• Mcdowell County Schools (rural): math 14% / reading 28% proficiency, ranked #55 of 55 in WV (top 100%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 70% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 12 active listings in the ZIP; 7 units permitted in McDowell County in 2024 (0 in 5+ unit buildings).
• McDowell County population projected at -48% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-1.6% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 37 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1930 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.