135 Sutherlin Ave

Danville, VA 24541

$235,000D

6 bd · 3.0 ba · 5,335 sqft · Built 1907 · SingleFamily · Active · 287 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,707/mo
• Mortgage (P&I): −$1,232
• Tax + insurance: −$183
• HOA: −$0
• Vac / Maint / Mgmt: −$359
• Net cashflow: $-66/mo
• Annual: $-795/yr
• Cap rate: 5.95%
• Cash-on-cash: -1.21%
• DSCR: 0.95
• 1% rule: 0.73%
• Cash to close: $65,800

Investor read

• This is a 6-bed/3.0-bath single-family listed at $235k.
• At list price, monthly cash flow is $-66 ($-795/yr) — negative.
• To cash-flow at today's rent, offer at most $223k (5.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $171k (27.3% below list).
• It's been on market 287 days — a 12% lower offer ($207k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $171k (27.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#91 in VA, #2,952 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities D+, crime D-, commute F.
• Danville City Public School District (town): math 30% / reading 44% proficiency, ranked #128 of 131 in VA (top 98%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 71% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Forest Hills Elementary (math 47% / reading 62%, grade C, #650 of 1,108 statewide, top 62%, 209 students, 99% FRL); Westwood Middle (math 22% / reading 40%, grade F, #333 of 342 statewide, top 97%, 609 students, 90% FRL); George Washington High (math 44% / reading 54%, grade D, #300 of 319 statewide, top 94%, 1,309 students, 88% FRL) — zoned schools average 92% FRL vs 71% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1907 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 249 active listings in the ZIP; 54 units permitted in Danville city in 2024 (40 in 5+ unit buildings).
• Danville County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $57k; list at $235k implies a 314% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 40% of the median local income ($51k/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 287 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
• Built in 1907 — 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?
• Crime grade is D 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?
• 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?