431 Alleghany St

Blacksburg, VA 24060

$379,500D

3 bd · 2.0 ba · 2,480 sqft · Built 1960 · SingleFamily · Pending · 46 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,400/mo
• Mortgage (P&I): −$1,990
• Tax + insurance: −$340
• HOA: −$0
• Vac / Maint / Mgmt: −$504
• Net cashflow: $-434/mo
• Annual: $-5,207/yr
• Cap rate: 4.92%
• Cash-on-cash: -4.90%
• DSCR: 0.78
• 1% rule: 0.63%
• Cash to close: $106,260

Investor read

• This is a 3-bed/2.0-bath single-family listed at $380k.
• At list price, monthly cash flow is $-434 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $303k (20.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $240k (36.8% below list).
• It's been on market 46 days — a 3% lower offer ($368k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $240k (36.8% 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 $11k of value loss. Plan a longer hold.
• Location reads 88/100 on livability (#8 in VA, #215 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, commute A+; Watch: cost of living C-, housing C-.
• Montgomery County Public School District (urban): math 57% / reading 70% proficiency, ranked #47 of 131 in VA (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Harding Avenue Elementary (math 77% / reading 87%, grade A+, #106 of 1,108 statewide, top 11%, 296 students, 18% FRL); Blacksburg Middle (math 62% / reading 77%, grade A, #85 of 342 statewide, top 26%, 946 students, 30% FRL); Blacksburg High (math 80% / reading 92%, grade A, #20 of 319 statewide, top 6%, 1,321 students, 23% FRL).
• Zoned-school proficiency averages 79% at this address vs 64% district-wide (+16 pts) — the actual schools serving this property are materially stronger than the Montgomery County Public School District average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents rising (+4.0%/yr); 313 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 323 units permitted in Montgomery County in 2024 (0 in 5+ unit buildings).
• Montgomery County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 4y 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.
• Current owner paid $320k; 19% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 4.9% vs local median 2.5% in Blacksburg — 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.
• This rent runs 43% of the median local income ($68k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 46 days. Have you received any prior offers? Is the seller open to a 37% concession, seller financing, or rate buy-down credit?
• Built in 1960 — 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 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.