7720 Courthouse Rd

Spotsylvania Courthouse, VA 22551

$325,000C-

3 bd · 1.5 ba · 1,494 sqft · Built 1962 · SingleFamily · Coming Soon · 13 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,537/mo
• Mortgage (P&I): −$1,704
• Tax + insurance: −$257
• HOA: −$0
• Vac / Maint / Mgmt: −$533
• Net cashflow: $43/mo
• Annual: $519/yr
• Cap rate: 6.45%
• Cash-on-cash: 0.57%
• DSCR: 1.03
• 1% rule: 0.78%
• Cash to close: $91,000

Investor read

• This is a 3-bed/1.5-bath single-family listed at $325k.
• At list price, monthly cash flow is $43 ($519/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $254k (21.9% below list).
• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $254k (21.9% 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 $10k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#228 in VA) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, crime A-; Watch: cost of living C-, amenities F, commute F.
• Spotsylvania County Public School District (rural): math 54% / reading 71% proficiency, ranked #38 of 131 in VA (top 29%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Spotsylvania Elementary (math 65% / reading 72%, grade B+, #357 of 1,108 statewide, top 33%, 588 students, 48% FRL); Post Oak Middle (math 48% / reading 63%, grade B-, #186 of 342 statewide, top 55%, 665 students, 64% FRL); Spotsylvania High (math 41% / reading 81%, grade C+, #242 of 319 statewide, top 76%, 1,388 students, 66% FRL) — zoned schools average 59% FRL vs 30% district-wide (29 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 199 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 707 units permitted in Spotsylvania County in 2024 (0 in 5+ unit buildings).
• Spotsylvania County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $175k; list at $325k implies a 86% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.5% vs local median 3.4% in Spotsylvania Courthouse — 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

• Built in 1962 — 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.