Darlington II - Garage Plan Plan

Charles Town, WV 25414

$301,990D

3 bd · 2.5 ba · 1,861 sqft · Built — · Townhouse · Active · 62 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,362/mo
• Mortgage (P&I): −$1,620
• Tax + insurance: −$515
• HOA: −$0
• Vac / Maint / Mgmt: −$496
• Net cashflow: $-269/mo
• Annual: $-3,223/yr
• Cap rate: 5.25%
• Cash-on-cash: -3.73%
• DSCR: 0.83
• 1% rule: 0.76%
• Cash to close: $86,499

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $302k.
• At list price, monthly cash flow is $-269 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $270k (10.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $236k (21.8% below list).
• It's been on market 62 days — a 6% lower offer ($284k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $236k (21.8% below list) — sets the bar for 1% rule.
• In year one you build about $10k of equity ($2k loan paydown + $8k appreciation (2.7% local appreciation)).
• Location reads 76/100 on livability (#22 in WV, #3,460 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, health & safety A+; Watch: amenities D+, commute F.
• Jefferson County Schools (rural): math 29% / reading 46% proficiency, ranked #6 of 55 in WV (top 11%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Page Jackson Elementary (365 students, 0% FRL); Charles Town Middle School (math 22% / reading 45%, grade F, #40 of 109 statewide, top 37%, 637 students, 0% FRL); Washington High School (math 32% / reading 57%, grade F, #11 of 110 statewide, top 11%, 1,328 students, 0% FRL) — zoned schools average 0% FRL vs 33% district-wide (33 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents rising fast (+4.3%/yr); 392 active listings in the ZIP; 14 comparable units currently listed for rent nearby; rentals at typical pace (median 27d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,162 units permitted in Jefferson County in 2024 (360 in 5+ unit buildings).
• Jefferson County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• By year 4, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.2% vs local median 3.5% in Charles Town — 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?
• It's been on market 62 days. Have you received any prior offers? Is the seller open to a 22% 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.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.