1406 University City Blvd Unit F

Blacksburg, VA 24060

$150,000D

1 bd · 1.0 ba · 504 sqft · Built 1987 · Condo · Active · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,263/mo
• Mortgage (P&I): −$787
• Tax + insurance: −$127
• HOA: −$137
• Vac / Maint / Mgmt: −$265
• Net cashflow: $-53/mo
• Annual: $-632/yr
• Cap rate: 5.87%
• Cash-on-cash: -1.51%
• DSCR: 0.93
• 1% rule: 0.84%
• Cash to close: $42,000

Investor read

• This is a 1-bed/1.0-bath condo listed at $150k.
• At list price, monthly cash flow is $-53 ($-632/yr) — negative.
• To cash-flow at today's rent, offer at most $141k (6.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $126k (15.8% below list).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $126k (15.8% 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 $4k of value loss. Plan a longer hold.
• Location reads 88/100 on livability (#8 in VA, #215 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, commute A+; Watch: cost of living C-, housing C-.
• Montgomery County Public School District (urban): math 57% / reading 70% proficiency, ranked #47 of 131 in VA (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Gilbert Linkous Elementary (math 87% / reading 82%, grade A+, #71 of 1,108 statewide, top 8%, 329 students, 24% FRL); Blacksburg Middle (math 62% / reading 77%, grade A, #85 of 342 statewide, top 26%, 946 students, 30% FRL); Blacksburg High (math 80% / reading 92%, grade A, #20 of 319 statewide, top 6%, 1,321 students, 23% FRL).
• Zoned-school proficiency averages 80% at this address vs 64% district-wide (+16 pts) — the actual schools serving this property are materially stronger than the Montgomery County Public School District average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents rising (+4.0%/yr); 315 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 323 units permitted in Montgomery County in 2024 (0 in 5+ unit buildings).
• Montgomery County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 5.9% vs local median 2.5% in Blacksburg — 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.