8593 Highland Tpke

McDowell, VA 24458

$135,900D+

2 bd · 1.0 ba · 1,205 sqft · Built 1930 · SingleFamily · Active · 42 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,051/mo
• Mortgage (P&I): −$713
• Tax + insurance: −$103
• HOA: −$0
• Vac / Maint / Mgmt: −$221
• Net cashflow: $15/mo
• Annual: $179/yr
• Cap rate: 6.42%
• Cash-on-cash: 0.47%
• DSCR: 1.02
• 1% rule: 0.77%
• Cash to close: $38,052

Investor read

• This is a 2-bed/1.0-bath single-family listed at $136k.
• At list price, monthly cash flow is $15 ($179/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $105k (22.6% below list).
• It's been on market 42 days — a 3% lower offer ($132k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $105k (22.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-2.2%/yr); year-one equity from $940 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Highland County Public School District (rural): math 85% / reading 90% proficiency, ranked #19 of 134 in VA (top 14%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Highland Elementary (math 54% / reading 74%, grade B, #416 of 1,108 statewide, top 41%, 97 students, 44% FRL); Highland High (math 64% / reading 95%, grade A, #62 of 319 statewide, top 19%, 103 students, 30% FRL).
• Zoned-school proficiency averages 72% at this address vs 88% district-wide (-15 pts) — the specific schools serving this property underperform the Highland County Public School District average; the district grade overstates school quality for this exact location.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 12 units permitted in Highland County in 2024 (0 in 5+ unit buildings).
• Highland County population projected at -44% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 9y 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.
• Current owner paid $94k; 45% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: moderate flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 42 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• 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.
• 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.
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.