1475 Hawthorne Rd

Norton, VA 24273

$159,000C-

3 bd · 3.0 ba · 1,776 sqft · Built 1983 · SingleFamily · Active · 106 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,213/mo
• Mortgage (P&I): −$834
• Tax + insurance: −$553
• HOA: −$0
• Vac / Maint / Mgmt: −$255
• Net cashflow: $-429/mo
• Annual: $-5,145/yr
• Cap rate: 6.28%
• Cash-on-cash: -0.06%
• DSCR: 1.00
• 1% rule: 0.76%
• Cash to close: $44,520

Investor read

• This is a 3-bed/3.0-bath single-family listed at $159k.
• At list price, monthly cash flow is $-429 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $83k (47.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $121k (23.7% below list).
• It's been on market 106 days — a 9% lower offer ($145k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $83k (47.6% below list) — sets the bar for cash-flow.
• In year one you build about $1k of equity ($1k loan paydown + $226 appreciation (0.1% local appreciation)).
• Location reads 74/100 on livability (#139 in VA, #4,441 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+; Watch: commute D, crime F, amenities F.
• Norton City Public School District (town): math 68% / reading 85% proficiency, ranked #12 of 131 in VA (top 9%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Norton Elementary (math 67% / reading 82%, grade A, #220 of 1,108 statewide, top 22%, 501 students, 96% FRL); J.I. Burton High (math 72% / reading 92%, grade A, #40 of 319 statewide, top 15%, 312 students, 96% FRL) — zoned schools average 96% FRL vs 58% district-wide (38 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 40 active listings in the ZIP.
• Norton County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 4 sale attempts since 8y ago; this cycle's ask has dropped $26k (14%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $110k; 45% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.3% vs local median 4.4% in Norton — 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 106 days. Have you received any prior offers? Is the seller open to a 48% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• 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.