Elder Plan

Barboursville, VA 22923

$419,990F

5 bd · 2.5 ba · 2,203 sqft · Built — · SingleFamily · Active · 336 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,435/mo
• Mortgage (P&I): −$2,436
• Tax + insurance: −$774
• HOA: −$0
• Vac / Maint / Mgmt: −$721
• Net cashflow: $-496/mo
• Annual: $-5,954/yr
• Cap rate: 5.01%
• Cash-on-cash: -4.58%
• DSCR: 0.80
• 1% rule: 0.74%
• Cash to close: $130,050

Investor read

• This is a 5-bed/2.5-bath single-family listed at $420k.
• At list price, monthly cash flow is $-496 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $393k (6.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $343k (18.2% below list).
• It's been on market 336 days — a 12% lower offer ($370k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $343k (18.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Greene County Public School District (town): math 40% / reading 64% proficiency, ranked #88 of 131 in VA (top 67%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Ruckersville Elementary (math 54% / reading 62%, grade C+, #583 of 1,108 statewide, top 53%, 506 students, 68% FRL); William Monroe Middle (math 36% / reading 65%, grade C, #226 of 342 statewide, top 67%, 675 students, 67% FRL); William Monroe High (math 40% / reading 78%, grade C+, #256 of 319 statewide, top 81%, 957 students, 67% FRL) — zoned schools average 68% FRL vs 32% district-wide (36 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 185 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 204 units permitted in Greene County in 2024 (34 in 5+ unit buildings).
• Greene County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• This rent runs 35% of the median local income ($118k/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 336 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• 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.
• 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.