3819 Moorman Dr

Lynchburg, VA 24501

$255,000F

1 bd · 2.5 ba · 2,530 sqft · Built 1954 · SingleFamily · Active · 45 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,061/mo
• Mortgage (P&I): −$1,337
• Tax + insurance: −$270
• HOA: −$0
• Vac / Maint / Mgmt: −$223
• Net cashflow: $-770/mo
• Annual: $-9,236/yr
• Cap rate: 2.67%
• Cash-on-cash: -12.94%
• DSCR: 0.42
• 1% rule: 0.42%
• Cash to close: $71,400

Investor read

• This is a 1-bed/2.5-bath single-family listed at $255k.
• At list price, monthly cash flow is $-770 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $119k (53.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $106k (58.4% below list).
• It's been on market 45 days — a 3% lower offer ($247k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $106k (58.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 91/100 on livability (#1 in VA, #58 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime C-, employment D+.
• Lynchburg City Public School District (urban): math 36% / reading 61% proficiency, ranked #104 of 131 in VA (top 79%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Perrymont Elementary (math 27% / reading 42%, grade F, #966 of 1,108 statewide, top 89%, 337 students, 95% FRL); Paul Laurence Dunbar Middle For Innovation (math 37% / reading 66%, grade C, #222 of 342 statewide, top 65%, 531 students, 95% FRL); E.C. Glass High (math 42% / reading 84%, grade B-, #223 of 319 statewide, top 70%, 1,325 students, 92% FRL) — zoned schools average 94% FRL vs 61% district-wide (33 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1954 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.1%/yr); 221 active listings in the ZIP; lower-income renter base — watch delinquency; 472 units permitted in Lynchburg city in 2024 (240 in 5+ unit buildings).
• Lynchburg County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $18k; list at $255k implies a 1317% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.7% vs local median 4.0% in Lynchburg — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 30% of the median local income ($42k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 45 days. Have you received any prior offers? Is the seller open to a 58% concession, seller financing, or rate buy-down credit?
• Built in 1954 — 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.
• 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.