2474 Magnolia Ave

Buena Vista, VA 24416

$2,750,000B-

22 bd · 11.0 ba · 9,984 sqft · Built 2007 · MultiFamily · Active · 65 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $36,477/mo
• Mortgage (P&I): −$14,421
• Tax + insurance: −$2,100
• HOA: −$0
• Vac / Maint / Mgmt: −$7,660
• Net cashflow: $12,295/mo
• Annual: $147,544/yr
• Cap rate: 11.66%
• Cash-on-cash: 19.16%
• DSCR: 1.85
• 1% rule: 1.33%
• Cash to close: $770,000

Investor read

• This is a 13×2bd/1ba + 27×1bd/1ba units multifamily listed at $2.75M.
• At list price, monthly cash flow is $12k ($148k/yr) — positive. Per door: $307/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($36k rent vs $2.75M).
• It's been on market 65 days — a 6% lower offer ($2.58M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.58M (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $19k of loan paydown is wiped out by about $82k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#217 in VA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A; Watch: health & safety C-, amenities F, commute F.
• Buena Vista City Public School District (rural): math 54% / reading 68% proficiency, ranked #61 of 131 in VA (top 47%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: F.W. Kling Jr. Elementary (249 students, 86% FRL); Parry Mccluer Middle (math 72% / reading 77%, grade A, #50 of 342 statewide, top 16%, 119 students, 87% FRL); Parry Mccluer High (math 37% / reading 67%, grade D+, #295 of 319 statewide, top 93%, 330 students, 86% FRL) — zoned schools average 86% FRL vs 44% district-wide (42 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 56 active listings in the ZIP; 18 units permitted in Buena Vista city in 2024 (0 in 5+ unit buildings).
• Buena Vista County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $770k cash investment doubles in ~7 years — after that, you're playing with house money.
• Cap rate 11.7% vs local median 3.5% in Buena Vista — 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.
• At $36,477/mo this rent would consume 798% of the median local household income ($55k/yr) (locally 239% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 65 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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 B-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?
• 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.