650 Alleghany Ave

Staunton, VA 24401

$440,000C

4 bd · 5.0 ba · 2,232 sqft · Built 1930 · MultiFamily · Pending · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,820/mo
• Mortgage (P&I): −$2,307
• Tax + insurance: −$421
• HOA: −$0
• Vac / Maint / Mgmt: −$1,012
• Net cashflow: $1,080/mo
• Annual: $12,956/yr
• Cap rate: 9.24%
• Cash-on-cash: 10.52%
• DSCR: 1.47
• 1% rule: 1.10%
• Cash to close: $123,200

Investor read

• This is a 4-bed/5.0-bath multifamily listed at $440k.
• At list price, monthly cash flow is $1k ($13k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $440k).
• 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 $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#56 in VA, #1,524 nationally) — a professional / high-income tenant draw. Strengths: cost of living A+, housing A+, health & safety A+; Watch: commute F.
• Staunton City Public School District (urban): math 48% / reading 67% proficiency, ranked #73 of 131 in VA (top 56%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Thomas C. Mcswain Elementary (math 62% / reading 72%, grade B+, #381 of 1,108 statewide, top 36%, 415 students, 100% FRL); Shelburne Middle (math 43% / reading 66%, grade B-, #194 of 342 statewide, top 60%, 574 students, 99% FRL); Staunton High (math 48% / reading 77%, grade B-, #226 of 319 statewide, top 72%, 822 students, 99% FRL) — zoned schools average 99% FRL vs 47% district-wide (52 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.8%/yr); 302 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 71 units permitted in Staunton city in 2024 (20 in 5+ unit buildings).
• Staunton County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 14y ago 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.
• At projected returns (-3.0% appreciation + 5.8% rent growth), your $123k cash investment doubles in ~9 years — after that, you're playing with house money.
• Cap rate 9.2% vs local median 3.0% in Staunton — 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 $4,820/mo this rent would consume 87% of the median local household income ($66k/yr) (locally 1306% 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 1930 — 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 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?
• 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.