2901 Charing Cross Rd #11

Merrifield, VA 22042

$255,000D-

3 bd · 1.0 ba · 1,040 sqft · Built 1966 · Condo · Coming Soon · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,855/mo
• Mortgage (P&I): −$1,337
• Tax + insurance: −$425
• HOA: −$1,139
• Vac / Maint / Mgmt: −$600
• Net cashflow: $-646/mo
• Annual: $-7,750/yr
• Cap rate: 3.25%
• Cash-on-cash: -10.85%
• DSCR: 0.52
• 1% rule: 1.12%
• Cash to close: $71,400

Investor read

• This is a 3-bed/1.0-bath condo listed at $255k.
• At list price, monthly cash flow is $-646 ($-8k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $255k).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 90/100 on livability (#4 in VA, #90 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, commute A+; Watch: cost of living F.
• Fairfax County Public School District (suburban): math 61% / reading 73% proficiency, ranked #13 of 131 in VA (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: HOA is 40% of rent.
• Market conditions: Rents rising (+1.1%/yr); 115 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 2,861 units permitted in Fairfax County in 2024 (1,829 in 5+ unit buildings).
• Fairfax County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 3.3% vs local median 2.4% in Merrifield — 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?
• Built in 1966 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.