TRU Elation Plan

Bristol, VA 24202

$62,000F

3 bd · 2.0 ba · 902 sqft · Built — · SingleFamily · Active · 125 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,264/mo
• Mortgage (P&I): −$664
• Tax + insurance: −$211
• HOA: −$474
• Vac / Maint / Mgmt: −$265
• Net cashflow: $-351/mo
• Annual: $-4,212/yr
• Cap rate: 2.97%
• Cash-on-cash: -11.88%
• DSCR: 0.47
• 1% rule: 1.00%
• Cash to close: $35,465

Investor read

• This is a 3-bed/2.0-bath single-family listed at $62k. Condition is rated poor.
• At list price, monthly cash flow is $-351 ($-4k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $62k).
• It's been on market 125 days — a 12% lower offer ($55k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $55k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $875 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#140 in VA, #4,544 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, commute F, employment F.
• Washington County Public School District (rural): math 68% / reading 79% proficiency, ranked #15 of 131 in VA (top 12%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: High Point Elementary (math 76% / reading 76%, grade A, #202 of 1,108 statewide, top 19%, 596 students, 66% FRL); Wallace Middle (math 74% / reading 80%, grade A, #38 of 342 statewide, top 11%, 426 students, 65% FRL); John S. Battle High (math 67% / reading 82%, grade B+, #107 of 319 statewide, top 37%, 659 students, 65% FRL) — zoned schools average 66% FRL vs 42% district-wide (24 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 3.1% of price; HOA is 38% of rent.
• Market conditions: 209 active listings in the ZIP; 99 units permitted in Washington County in 2024 (0 in 5+ unit buildings).
• Washington County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Cap rate 3.0% vs local median 4.6% in Bristol — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 125 days. Have you received any prior offers? Is the seller open to a 12% 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?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 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?

Repairs flagged (vision-AI assessment)

• Major: roof repair — Significant damage and potential leaks.
• Major: exterior siding repair — Severe wear and possible rot.
• Major: flooring replacement — Significant wear and potential damage.
• Major: paint repair and repainting — Severe peeling and wear.
• Major: HVAC system replacement — Visible rust and potential malfunction.
• Major: landscaping and curb appeal improvements — Sparse and overgrown vegetation, lack of curb appeal.