362 Rakes Ridge Rd

Haysi, VA 24220

$45,000B

2 bd · 1.0 ba · 1,010 sqft · Built 1960 · SingleFamily · Active · 318 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $948/mo
• Mortgage (P&I): −$236
• Tax + insurance: −$75
• HOA: −$0
• Vac / Maint / Mgmt: −$199
• Net cashflow: $438/mo
• Annual: $5,259/yr
• Cap rate: 17.98%
• Cash-on-cash: 41.74%
• DSCR: 2.86
• 1% rule: 2.11%
• Cash to close: $12,600

Investor read

• This is a 2-bed/1.0-bath single-family listed at $45k. Condition is rated poor.
• At list price, monthly cash flow is $438 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($948 rent vs $45k).
• It's been on market 318 days — a 12% lower offer ($40k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $40k (12.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($311 loan paydown + $1k appreciation (3.0% local appreciation)).
• Location reads 46/100 on livability (#560 in VA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: crime D, amenities F, commute F.
• Dickenson County Public School District (rural): math 59% / reading 66% proficiency, ranked #58 of 131 in VA (top 44%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Sandlick Elementary (math 57% / reading 52%, grade C, #650 of 1,108 statewide, top 62%, 376 students, 91% FRL); Ridgeview Middle (math 57% / reading 72%, grade A-, #123 of 342 statewide, top 37%, 440 students, 89% FRL); Ridgeview High (math 62% / reading 72%, grade B, #185 of 319 statewide, top 61%, 592 students, 89% FRL) — zoned schools average 90% FRL vs 52% district-wide (37 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 2 active listings in the ZIP; 11 units permitted in Dickenson County in 2024 (0 in 5+ unit buildings).
• Dickenson County population projected at -30% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 318 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1960 — 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Peeling paint
• Major: kitchen cabinets — Damaged and cluttered
• Major: bathroom walls — Pink walls and cluttered space
• Major: flooring — Damaged carpet
• Major: interior walls — Peeling paint