4401 E Mclaw St

Fredericksburg, VA 22408

$164,900B-

3 bd · 2.0 ba · 1,140 sqft · Built 2026 · SingleFamily · Coming Soon · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,087/mo
• Mortgage (P&I): −$865
• Tax + insurance: −$275
• HOA: −$0
• Vac / Maint / Mgmt: −$438
• Net cashflow: $509/mo
• Annual: $6,108/yr
• Cap rate: 10.00%
• Cash-on-cash: 13.23%
• DSCR: 1.59
• 1% rule: 1.27%
• Cash to close: $46,172

Investor read

• This is a 3-bed/2.0-bath single-family listed at $165k. Condition is rated good.
• At list price, monthly cash flow is $509 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $165k).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#299 in VA) — a middle-class / working-renter tenant base. Strengths: health & safety A+, employment A-, housing B+; Watch: crime F, commute F, cost of living 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: Spotswood Elementary (math 48% / reading 55%, grade C-, #728 of 1,108 statewide, top 66%, 510 students, 63% FRL); Battlefield Middle (math 37% / reading 64%, grade C, #226 of 342 statewide, top 67%, 791 students, 66% FRL); Massaponax High (math 57% / reading 84%, grade B+, #150 of 319 statewide, top 47%, 1,736 students, 64% FRL) — zoned schools average 64% FRL vs 30% district-wide (35 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+3.1%/yr); 130 active listings in the ZIP; 15 comparable units currently listed for rent nearby; rentals leasing fast (median 3d on market — plan ~1-2 weeks tenant-placement turnaround); 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.
• At projected returns (-3.0% appreciation + 3.1% rent growth), your $46k cash investment doubles in ~9 years — after that, you're playing with house money.
• Cap rate 10.0% vs local median 3.6% in Fredericksburg — 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

• 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?
• Crime grade is F 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.
• 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.