1411 Olivewood Ct

Virginia Beach, VA 23464

$205,900D

2 bd · 1.0 ba · 977 sqft · Built 1986 · Condo · Under Contract · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,823/mo
• Mortgage (P&I): −$1,080
• Tax + insurance: −$236
• HOA: −$200
• Vac / Maint / Mgmt: −$383
• Net cashflow: $-76/mo
• Annual: $-915/yr
• Cap rate: 5.85%
• Cash-on-cash: -1.59%
• DSCR: 0.93
• 1% rule: 0.89%
• Cash to close: $57,652

Investor read

• This is a 2-bed/1.0-bath condo listed at $206k.
• At list price, monthly cash flow is $-76 ($-915/yr) — negative.
• To cash-flow at today's rent, offer at most $192k (6.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $182k (11.5% below list).
• It's been on market 27 days — a 2% lower offer ($203k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $182k (11.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#38 in VA, #880 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, employment A+, housing A+; Watch: cost of living C-, commute F.
• Va Beach City Public School District (urban): math 69% / reading 78% proficiency, ranked #10 of 131 in VA (top 8%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Princess Anne Elementary (math 85% / reading 86%, grade A+, #61 of 1,108 statewide, top 6%, 682 students, 13% FRL); Salem Middle (math 70% / reading 82%, grade A, #42 of 342 statewide, top 13%, 1,073 students, 39% FRL); Salem High (math 79% / reading 90%, grade A, #23 of 319 statewide, top 8%, 1,650 students, 36% FRL) — zoned schools at 29% FRL track the district average.
• Market conditions: Rents rising fast (+6.4%/yr); 239 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 666 units permitted in Virginia Beach city in 2024 (347 in 5+ unit buildings).
• Virginia Beach County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 5y 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 $132k; list at $206k implies a 56% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.8% vs local median 3.5% in Virginia Beach — 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?
• 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?
• 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?
• 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.