2435 S Virginia Dare Trl Lot 2

Nags Head, NC 27959

$79,000B+

4 bd · 3.0 ba · 2,183 sqft · Built 1983 · Condo · Active · 64 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,473/mo
• Mortgage (P&I): −$414
• Tax + insurance: −$801
• HOA: −$0
• Vac / Maint / Mgmt: −$309
• Net cashflow: $-51/mo
• Annual: $-617/yr
• Cap rate: 15.67%
• Cash-on-cash: 33.50%
• DSCR: 2.49
• 1% rule: 1.86%
• Cash to close: $22,120

Investor read

• This is a 4-bed/3.0-bath condo listed at $79k. Condition is rated fair.
• At list price, monthly cash flow is $-51 ($-617/yr) — negative.
• To cash-flow at today's rent, offer at most $72k (9.4% below list).
• Meets the 1% rule at list price ($1k rent vs $79k).
• It's been on market 64 days — a 6% lower offer ($74k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $72k (9.4% below list) — sets the bar for cash-flow.
• In year one you build about $8k of equity ($546 loan paydown + $8k appreciation (10.0% local appreciation)).
• Location reads 63/100 on livability (#435 in NC) — a middle-class / working-renter tenant base. Strengths: employment A+, housing B+; Watch: crime D+, cost of living D, amenities F.
• Dare County Schools (town): math 44% / reading 48% proficiency, ranked #77 of 178 in NC (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: flood insurance adds $669/mo.
• Market conditions: 106 active listings in the ZIP; 371 units permitted in Dare County in 2024 (0 in 5+ unit buildings).
• Dare County population projected at +14% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 9 sale attempts since 8y 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 $66k; 20% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$39k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone VE (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 64 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 B-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?

Repairs flagged (vision-AI assessment)

• Major: Deck — Significant rot and damage
• Moderate: Exterior siding — Weathered and peeling
• Minor: Windows — Some minor cracks