680 Grommet Dr

Harrisonburg, VA 22801

$400,000D

4 bd · 3.0 ba · 1,680 sqft · Built 2023 · SingleFamily · Under Contract · 19 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,917/mo
• Mortgage (P&I): −$2,098
• Tax + insurance: −$342
• HOA: −$0
• Vac / Maint / Mgmt: −$613
• Net cashflow: $-135/mo
• Annual: $-1,621/yr
• Cap rate: 5.89%
• Cash-on-cash: -1.45%
• DSCR: 0.94
• 1% rule: 0.73%
• Cash to close: $112,000

Investor read

• This is a 4-bed/3.0-bath single-family listed at $400k.
• At list price, monthly cash flow is $-135 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $376k (6.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $292k (27.1% below list).
• It's been on market 19 days — a 2% lower offer ($394k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $292k (27.1% 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 84/100 on livability (#24 in VA, #666 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A+; Watch: employment C-.
• Rockingham County Public School District (rural): math 47% / reading 64% proficiency, ranked #77 of 131 in VA (top 59%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Mountain View Elementary (math 37% / reading 52%, grade F, #827 of 1,108 statewide, top 77%, 406 students, 53% FRL); Wilbur S. Pence Middle (math 46% / reading 64%, grade B-, #189 of 342 statewide, top 56%, 668 students, 39% FRL); Turner Ashby High (math 78% / reading 82%, grade A, #60 of 319 statewide, top 19%, 994 students, 35% FRL).
• Market conditions: Rents rising fast (+6.5%/yr); 196 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 683 units permitted in Rockingham County in 2024 (0 in 5+ unit buildings).
• Rockingham County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 3y ago 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.
• Cap rate 5.9% vs local median 3.8% in Harrisonburg — 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 $2,917/mo this rent would consume 49% of the median local household income ($72k/yr) (locally 2712% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• 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.