1523 Cox's Chapel Rd

Independence, VA 24363

$134,900F

1 bd · 1.0 ba · 410 sqft · Built 2002 · SingleFamily · Active · 48 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $775/mo
• Mortgage (P&I): −$707
• Tax + insurance: −$225
• HOA: −$0
• Vac / Maint / Mgmt: −$163
• Net cashflow: $-320/mo
• Annual: $-3,839/yr
• Cap rate: 3.45%
• Cash-on-cash: -10.16%
• DSCR: 0.55
• 1% rule: 0.57%
• Cash to close: $37,772

Investor read

• This is a 1-bed/1.0-bath single-family listed at $135k.
• At list price, monthly cash flow is $-320 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $89k (34.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $78k (42.5% below list).
• It's been on market 48 days — a 3% lower offer ($131k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $78k (42.5% below list) — sets the bar for 1% rule.
• In year one you build about $2k of equity ($933 loan paydown + $1k appreciation (0.9% local appreciation)).
• Location reads 66/100 on livability (#320 in VA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: health & safety C-, amenities F, commute F.
• Grayson County Public School District (rural): math 68% / reading 76% proficiency, ranked #27 of 131 in VA (top 21%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Independence Elementary (math 62% / reading 77%, grade A-, #313 of 1,108 statewide, top 32%, 277 students, 89% FRL); Independence Middle (math 60% / reading 73%, grade A-, #107 of 342 statewide, top 33%, 262 students, 88% FRL); Grayson County High (math 82% / reading 82%, grade A, #40 of 319 statewide, top 15%, 465 students, 87% FRL) — zoned schools average 88% FRL vs 53% district-wide (35 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 18 active listings in the ZIP; 38 units permitted in Grayson County in 2024 (0 in 5+ unit buildings).
• Grayson County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $75k; list at $135k implies a 80% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.4% vs local median 1.8% in Independence — 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

• 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?
• It's been on market 48 days. Have you received any prior offers? Is the seller open to a 43% concession, seller financing, or rate buy-down credit?
• 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?
• 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.