105 Highland St

Beckley, WV 25801

$179,000B-

4 bd · 3.0 ba · 2,564 sqft · Built 1900 · MultiFamily · Active · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,424/mo
• Mortgage (P&I): −$939
• Tax + insurance: −$176
• HOA: −$0
• Vac / Maint / Mgmt: −$509
• Net cashflow: $801/mo
• Annual: $9,608/yr
• Cap rate: 11.66%
• Cash-on-cash: 19.17%
• DSCR: 1.85
• 1% rule: 1.35%
• Cash to close: $50,120

Investor read

• This is a 4-bed/3.0-bath multifamily listed at $179k.
• At list price, monthly cash flow is $801 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $179k).
• Only 11 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 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: Beckley Elementary (math 17% / reading 22%, grade F, #350 of 377 statewide, top 95%, 320 students, 0% FRL); Beckley-Stratton Middle School (math 14% / reading 27%, grade F, #102 of 109 statewide, top 94%, 674 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 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.2%/yr); 112 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.
• 2 sale attempts 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.
• Current owner paid $55k; list at $179k implies a 225% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 4.2% rent growth), your $50k cash investment doubles in ~6 years — after that, you're playing with house money.
• Cap rate 11.7% vs local median 7.0% 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 $2,424/mo this rent would consume 51% 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 1900 — 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.