109 Fairlawn Ave

Beckley, WV 25801

$169,000B-

4 bd · 2.0 ba · 1,560 sqft · Built 1950 · MultiFamily · Active · 83 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,033/mo
• Mortgage (P&I): −$886
• Tax + insurance: −$132
• HOA: −$0
• Vac / Maint / Mgmt: −$847
• Net cashflow: $2,168/mo
• Annual: $26,018/yr
• Cap rate: 21.69%
• Cash-on-cash: 54.98%
• DSCR: 3.45
• 1% rule: 2.39%
• Cash to close: $47,320

Investor read

• This is a 4 × 2-bed/1.5-bath units multifamily listed at $169k.
• At list price, monthly cash flow is $2k ($26k/yr) — positive. Per door: $542/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $169k).
• It's been on market 83 days — a 6% lower offer ($159k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $159k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#235 in WV) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A-; Watch: employment D, crime F, amenities F.
• Raleigh County Schools (rural): math 29% / reading 42% proficiency, ranked #14 of 55 in WV (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Beckley Elementary (math 17% / reading 22%, grade F, #350 of 377 statewide, top 95%, 320 students, 0% FRL); Park Middle School (math 40% / reading 49%, grade D, #10 of 109 statewide, top 8%, 394 students, 0% FRL); Woodrow Wilson High School (math 24% / reading 56%, grade F, #20 of 110 statewide, top 17%, 1,330 students, 0% FRL) — zoned schools average 0% FRL vs 46% district-wide (46 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.2%/yr); 112 active listings in the ZIP; 41 units permitted in Raleigh County in 2024 (0 in 5+ unit buildings).
• Raleigh County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $30k (15%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $28k; list at $169k implies a 493% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 4.2% rent growth), your $47k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 21.7% vs local median 7.0% in Beckley — 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 $4,033/mo this rent would consume 85% of the median local household income ($57k/yr) (locally 1384% 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 83 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?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?