574 Grandview Rd

Hot Springs, VA 24445

$95,950B-

3 bd · 1.0 ba · 1,132 sqft · Built 1882 · SingleFamily · Pending · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,009/mo
• Mortgage (P&I): −$503
• Tax + insurance: −$90
• HOA: −$0
• Vac / Maint / Mgmt: −$212
• Net cashflow: $204/mo
• Annual: $2,444/yr
• Cap rate: 8.84%
• Cash-on-cash: 9.10%
• DSCR: 1.40
• 1% rule: 1.05%
• Cash to close: $26,866

Investor read

• This is a 3-bed/1.0-bath single-family listed at $96k.
• At list price, monthly cash flow is $204 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $96k).
• It's been on market 28 days — a 2% lower offer ($95k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $95k (1.5% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($664 loan paydown + $3k appreciation (2.7% local appreciation)).
• Location reads 54/100 on livability (#527 in VA) — a working-class tenant base; expect higher turnover. Strengths: schools A+, cost of living A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Bath County Public School District (rural): math 59% / reading 67% proficiency, ranked #50 of 131 in VA (top 38%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1882 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 42 active listings in the ZIP; 8 units permitted in Bath County in 2024 (0 in 5+ unit buildings).
• Bath County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (2.7% appreciation + 3.0% rent growth), your $27k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 10, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1882 — 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?
• 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.