131 Terry Ln SE

Ferrum, VA 24079

$59,500A

1 bd · 1.0 ba · 740 sqft · Built 1999 · SingleFamily · Active · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $828/mo
• Mortgage (P&I): −$312
• Tax + insurance: −$99
• HOA: −$21
• Vac / Maint / Mgmt: −$174
• Net cashflow: $222/mo
• Annual: $2,667/yr
• Cap rate: 10.77%
• Cash-on-cash: 16.01%
• DSCR: 1.71
• 1% rule: 1.39%
• Cash to close: $16,660

Investor read

• This is a 1-bed/1.0-bath single-family listed at $60k. Condition is rated fair.
• At list price, monthly cash flow is $222 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($828 rent vs $60k).
• It's been on market 38 days — a 3% lower offer ($58k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $58k (3.0% below list) — sets the bar for market timing.
• In year one you build about $6k of equity ($411 loan paydown + $6k appreciation (10.0% local appreciation)).
• Location reads 65/100 on livability (#331 in VA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A; Watch: housing D+, amenities F, commute F.
• Floyd County Public School District (rural): math 56% / reading 70% proficiency, ranked #51 of 131 in VA (top 39%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Check Elementary (math 42% / reading 57%, grade D, #742 of 1,108 statewide, top 70%, 292 students, 75% FRL); Floyd County High (math 59% / reading 74%, grade B, #195 of 319 statewide, top 62%, 701 students, 74% FRL) — zoned schools average 74% FRL vs 39% district-wide (36 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 40 active listings in the ZIP; 69 units permitted in Floyd County in 2024 (0 in 5+ unit buildings).
• Floyd County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 6 sale attempts since 2y 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.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $17k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 10.8% vs local median 2.5% in Ferrum — 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

• It's been on market 38 days. Have you received any prior offers? Is the seller open to a 3% 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 does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Appliances — Outdated and in poor condition.
• Major: Bathroom fixtures — Old and worn, likely in need of replacement.
• Moderate: Exterior siding — Shows signs of wear and tear.
• Major: Carpeted flooring — Stained and worn, may need replacement.
• Major: Painted walls — Peeling and discoloration, may need repainting.
• Major: HVAC unit — Appears old and may need replacement.