505 Arches Ln

Ruckersville, VA 22923

$399,990D

5 bd · 2.5 ba · 2,203 sqft · Built 2026 · SingleFamily · Active · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,221/mo
• Mortgage (P&I): −$2,098
• Tax + insurance: −$667
• HOA: −$105
• Vac / Maint / Mgmt: −$676
• Net cashflow: $-325/mo
• Annual: $-3,895/yr
• Cap rate: 5.32%
• Cash-on-cash: -3.48%
• DSCR: 0.85
• 1% rule: 0.81%
• Cash to close: $111,997

Investor read

• This is a 5-bed/2.5-bath single-family listed at $400k. Condition is rated excellent.
• At list price, monthly cash flow is $-325 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $353k (11.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $322k (19.5% below list).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $322k (19.5% 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 $12k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#318 in VA) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A, housing A-; Watch: amenities F, commute F, health & safety F.
• Greene County Public School District (town): math 40% / reading 64% proficiency, ranked #88 of 131 in VA (top 67%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Ruckersville Elementary (math 54% / reading 62%, grade C+, #583 of 1,108 statewide, top 53%, 506 students, 68% FRL); William Monroe Middle (math 36% / reading 65%, grade C, #226 of 342 statewide, top 67%, 675 students, 67% FRL); William Monroe High (math 40% / reading 78%, grade C+, #256 of 319 statewide, top 81%, 957 students, 67% FRL) — zoned schools average 68% FRL vs 32% district-wide (36 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 333 active listings in the ZIP; 13 comparable units currently listed for rent nearby; rentals leasing fast (median 13d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 204 units permitted in Greene County in 2024 (34 in 5+ unit buildings).
• Greene County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 5.3% vs local median 3.9% in Ruckersville — 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 33% of the median local income ($118k/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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.