505 Ridge Rd

Cloverdale, VA 24175

$272,500D-

4 bd · 1.0 ba · 1,504 sqft · Built 1979 · Manufactured · Pending · 132 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,975/mo
• Mortgage (P&I): −$1,429
• Tax + insurance: −$199
• HOA: −$0
• Vac / Maint / Mgmt: −$415
• Net cashflow: $-68/mo
• Annual: $-819/yr
• Cap rate: 5.99%
• Cash-on-cash: -1.07%
• DSCR: 0.95
• 1% rule: 0.72%
• Cash to close: $76,300

Investor read

• This is a 4-bed/1.0-bath manufactured listed at $272k.
• At list price, monthly cash flow is $-68 ($-819/yr) — negative.
• To cash-flow at today's rent, offer at most $260k (4.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $197k (27.5% below list).
• It's been on market 132 days — a 12% lower offer ($240k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $197k (27.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#325 in VA) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, housing B; Watch: employment C-, amenities F, commute F.
• Botetourt County Public School District (rural): math 76% / reading 82% proficiency, ranked #6 of 131 in VA (top 5%) — strong family-tenant draw, lease renewals of 3-5y typical; only 19% free/reduced lunch — higher-income household profile.
• Market conditions: 78 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 116 units permitted in Botetourt County in 2024 (0 in 5+ unit buildings).
• Botetourt County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 6 sale attempts since 23y ago; this cycle's ask has dropped $27k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $68k; list at $272k implies a 301% gain — meaningful room to come down on a strong offer.
• Cap rate 6.0% vs local median 2.9% in Cloverdale — 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 132 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• Built in 1979 — 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 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.