6908 Fairfax Dr #100

Arlington, VA 22213

$430,000D

2 bd · 1.0 ba · 836 sqft · Built 1994 · Condo · Active · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,968/mo
• Mortgage (P&I): −$2,255
• Tax + insurance: −$535
• HOA: −$428
• Vac / Maint / Mgmt: −$623
• Net cashflow: $-873/mo
• Annual: $-10,477/yr
• Cap rate: 3.86%
• Cash-on-cash: -8.70%
• DSCR: 0.61
• 1% rule: 0.69%
• Cash to close: $120,400

Investor read

• This is a 2-bed/1.0-bath condo listed at $430k.
• At list price, monthly cash flow is $-873 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $276k (35.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $297k (31.0% below list).
• It's been on market 73 days — a 6% lower offer ($404k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $276k (35.9% below list) — sets the bar for cash-flow.
• In year one you build about $20k of equity ($3k loan paydown + $17k appreciation (3.9% local appreciation)).
• Location reads 86/100 on livability (#14 in VA, #387 nationally) — a professional / high-income tenant draw. Strengths: schools A+, crime A+, amenities A+; Watch: cost of living F.
• Arlington County Public School District (urban): math 65% / reading 77% proficiency, ranked #8 of 131 in VA (top 6%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Market conditions: 14 active listings in the ZIP; 35 comparable units currently listed for rent nearby; rentals leasing fast (median 5d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 621 units permitted in Arlington County in 2024 (429 in 5+ unit buildings).
• Arlington County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 8 sale attempts since 26y 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 $320k; 34% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.9% vs local median 1.7% in Arlington — 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.
• This rent is only 18% of the median local income ($199k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 73 days. Have you received any prior offers? Is the seller open to a 36% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?
• 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?