1229 Stack St

Staunton, VA 24401

$399,000C+

16 bd · 4.0 ba · 2,214 sqft · Built 1914 · MultiFamily · Active · 44 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,820/mo
• Mortgage (P&I): −$2,092
• Tax + insurance: −$389
• HOA: −$0
• Vac / Maint / Mgmt: −$1,012
• Net cashflow: $1,327/mo
• Annual: $15,919/yr
• Cap rate: 10.28%
• Cash-on-cash: 14.25%
• DSCR: 1.63
• 1% rule: 1.21%
• Cash to close: $111,720

Investor read

• This is a 4 × 1-bed/1-bath units multifamily listed at $399k.
• At list price, monthly cash flow is $1k ($16k/yr) — positive. Per door: $332/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $399k).
• It's been on market 44 days — a 3% lower offer ($387k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $387k (3.0% below list) — sets the bar for market timing.
• 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 81/100 on livability (#56 in VA, #1,524 nationally) — a professional / high-income tenant draw. Strengths: cost of living A+, housing A+, health & safety A+; Watch: commute F.
• Staunton City Public School District (urban): math 48% / reading 67% proficiency, ranked #73 of 131 in VA (top 56%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Bessie Weller Elementary (math 42% / reading 57%, grade D, #742 of 1,108 statewide, top 70%, 369 students, 99% FRL); Shelburne Middle (math 43% / reading 66%, grade B-, #194 of 342 statewide, top 60%, 574 students, 99% FRL); Staunton High (math 48% / reading 77%, grade B-, #226 of 319 statewide, top 72%, 822 students, 99% FRL) — zoned schools average 99% FRL vs 47% district-wide (52 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1914 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.8%/yr); 297 active listings in the ZIP; 71 units permitted in Staunton city in 2024 (20 in 5+ unit buildings).
• Staunton County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 5.8% rent growth), your $112k cash investment doubles in ~7 years — after that, you're playing with house money.
• Cap rate 10.3% vs local median 2.9% in Staunton — 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.
• At $4,820/mo this rent would consume 87% of the median local household income ($66k/yr) (locally 1306% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 44 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1914 — 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.