4523 Stormont Rd

Saluda, VA 23071

$250,000D-

4 bd · 2.5 ba · 3,291 sqft · Built 1970 · SingleFamily · Active · 110 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,645/mo
• Mortgage (P&I): −$1,311
• Tax + insurance: −$246
• HOA: −$0
• Vac / Maint / Mgmt: −$346
• Net cashflow: $-257/mo
• Annual: $-3,083/yr
• Cap rate: 5.06%
• Cash-on-cash: -4.40%
• DSCR: 0.80
• 1% rule: 0.66%
• Cash to close: $70,000

Investor read

• This is a 4-bed/2.5-bath single-family listed at $250k.
• At list price, monthly cash flow is $-257 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $205k (18.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $165k (34.2% below list).
• It's been on market 110 days — a 9% lower offer ($228k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $165k (34.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.2%/yr); year-one equity from $2k of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 47/100 on livability (#557 in VA) — a working-class tenant base; expect higher turnover. Strengths: crime A, cost of living A; Watch: amenities F, commute F, employment F.
• Middlesex County Public School District (rural): math 45% / reading 59% proficiency, ranked #90 of 131 in VA (top 69%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Middlesex Elementary (math 40% / reading 53%, grade D-, #817 of 1,108 statewide, top 74%, 611 students, 97% FRL); St. Clare Walker Middle (math 33% / reading 57%, grade D, #274 of 342 statewide, top 81%, 287 students, 87% FRL); Middlesex High (math 92% / reading 82%, grade A, #16 of 319 statewide, top 5%, 346 students, 99% FRL) — zoned schools average 94% FRL vs 44% district-wide (51 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 57 active listings in the ZIP; 97 units permitted in Middlesex County in 2024 (0 in 5+ unit buildings).
• Middlesex County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 2y 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: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.1% vs local median 3.0% in Saluda — 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?
• It's been on market 110 days. Have you received any prior offers? Is the seller open to a 34% concession, seller financing, or rate buy-down credit?
• Built in 1970 — 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 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?
• 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.