106 Quarry St

Beckley, WV 25801

$109,000B-

4 bd · 2.0 ba · 1,664 sqft · Built 1945 · MultiFamily · Active · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,337/mo
• Mortgage (P&I): −$572
• Tax + insurance: −$116
• HOA: −$0
• Vac / Maint / Mgmt: −$491
• Net cashflow: $1,159/mo
• Annual: $13,905/yr
• Cap rate: 19.05%
• Cash-on-cash: 45.56%
• DSCR: 3.03
• 1% rule: 2.14%
• Cash to close: $30,520

Investor read

• This is a 4-bed/2.0-bath multifamily listed at $109k.
• At list price, monthly cash flow is $1k ($14k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $109k).
• It's been on market 18 days — a 2% lower offer ($107k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $107k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $754 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#235 in WV) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A-; Watch: employment D, crime F, amenities F.
• Raleigh County Schools (rural): math 29% / reading 42% proficiency, ranked #14 of 55 in WV (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Crescent Elementary (math 57% / reading 42%, grade D, #49 of 377 statewide, top 16%, 323 students, 0% FRL); Park Middle School (math 40% / reading 49%, grade D, #10 of 109 statewide, top 8%, 394 students, 0% FRL); Woodrow Wilson High School (math 24% / reading 56%, grade F, #20 of 110 statewide, top 17%, 1,330 students, 0% FRL) — zoned schools average 0% FRL vs 46% district-wide (46 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1945 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.2%/yr); 114 active listings in the ZIP; 41 units permitted in Raleigh County in 2024 (0 in 5+ unit buildings).
• Raleigh County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 4y ago; this cycle's ask has dropped $10k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 4.2% rent growth), your $31k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 19.1% vs local median 6.8% in Beckley — 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 $2,337/mo this rent would consume 49% of the median local household income ($57k/yr) (locally 1384% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Built in 1945 — 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 D-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 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.