1011 Circle Tee Ln

Westlake Corner, VA 24095

$124,500D

2 bd · 1.0 ba · 798 sqft · Built 1984 · SingleFamily · Pending · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $904/mo
• Mortgage (P&I): −$653
• Tax + insurance: −$208
• HOA: −$0
• Vac / Maint / Mgmt: −$190
• Net cashflow: $-146/mo
• Annual: $-1,757/yr
• Cap rate: 4.88%
• Cash-on-cash: -5.04%
• DSCR: 0.78
• 1% rule: 0.73%
• Cash to close: $34,860

Investor read

• This is a 2-bed/1.0-bath single-family listed at $124k.
• At list price, monthly cash flow is $-146 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $103k (17.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $90k (27.4% below list).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $90k (27.4% below list) — sets the bar for 1% rule.
• In year one you build about $13k of equity ($861 loan paydown + $12k appreciation (10.0% local appreciation)).
• Location reads 54/100 on livability (#525 in VA) — a working-class tenant base; expect higher turnover. Strengths: crime A+; Watch: employment C-, cost of living D+, amenities F.
• Bedford County Public School District (rural): math 55% / reading 73% proficiency, ranked #41 of 131 in VA (top 31%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Goodview Elementary (math 47% / reading 57%, grade C-, #696 of 1,108 statewide, top 66%, 495 students, 70% FRL); Staunton River Middle (math 45% / reading 65%, grade B-, #189 of 342 statewide, top 56%, 627 students, 86% FRL); Staunton River High (math 39% / reading 66%, grade C-, #293 of 319 statewide, top 92%, 889 students, 69% FRL) — zoned schools average 75% FRL vs 30% district-wide (45 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 70 active listings in the ZIP; 294 units permitted in Bedford County in 2024 (0 in 5+ unit buildings).
• Bedford County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 4y 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 $91k; 37% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 3, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.9% vs local median 1.4% in Westlake Corner — 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-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.
• 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.