855 Meadowbrook Dr

Chilhowie, VA 24319

$225,000C-

4 bd · 3.0 ba · 1,792 sqft · Built 2006 · MultiFamily · Active · 50 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,954/mo
• Mortgage (P&I): −$1,180
• Tax + insurance: −$441
• HOA: −$0
• Vac / Maint / Mgmt: −$410
• Net cashflow: $-78/mo
• Annual: $-933/yr
• Cap rate: 6.23%
• Cash-on-cash: -0.21%
• DSCR: 0.99
• 1% rule: 0.87%
• Cash to close: $63,000

Investor read

• This is a 2 × 2.0-bed/1.5-bath units multifamily listed at $225k. Condition is rated fair.
• At list price, monthly cash flow is $-78 ($-933/yr) — negative. Per door: $-39/mo.
• To cash-flow at today's rent, offer at most $214k (5.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $195k (13.2% below list).
• It's been on market 50 days — a 3% lower offer ($218k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $195k (13.2% below list) — sets the bar for 1% rule.
• In year one you build about $24k of equity ($2k loan paydown + $22k appreciation (10.0% local appreciation)).
• Location reads 71/100 on livability (#208 in VA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: employment C-, health & safety C-, amenities F.
• Smyth County Public School District (rural): math 46% / reading 63% proficiency, ranked #89 of 131 in VA (top 68%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Chilhowie Elementary (math 36% / reading 49%, grade F, #862 of 1,108 statewide, top 78%, 543 students, 89% FRL); Chilhowie Middle (math 62% / reading 69%, grade A-, #116 of 342 statewide, top 35%, 306 students, 70% FRL); Chilhowie High (math 62% / reading 82%, grade B+, #134 of 319 statewide, top 45%, 393 students, 64% FRL) — zoned schools average 74% FRL vs 54% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 76 active listings in the ZIP; 38 units permitted in Smyth County in 2024 (0 in 5+ unit buildings).
• Smyth County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $63k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$39k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk; moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

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 50 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?

Repairs flagged (vision-AI assessment)

• Major: Paint on exterior doors and trim — Significant wear and fading
• Major: Landscaping — Overgrown and needs trimming