On January 9, RealtyPeople listed a 3 bedroom townhouse-style home in The Meadows condominium in Centreville for $275,000.  The home is in poor condition, but the price reflects that.  In short, this unit is possibly the cheapest townhouse-style property available in all of Northern Virginia.  The home’s address is 14491 Rustling Leaves Lane, Centreville, VA 20121.

We believe that at this price, the property is a great deal, but we also think that more broadly, The Meadows is an excellent target for investors.  In this post, we’ll explain why.

A “Sweat Equity” opportunity.

14491 Rustling Leaves is in poor condition, needing a new kitchen, baths, flooring, painting and wall finishes, along with cosmetic trim work.  Given that this is a condominium, the roof, foundation, structure and exterior are all the responsibility of the condominium association.  Although substantial work is required, it’s limited to the interior of the unit.  Fully updated units of this type sell for about $350,000.  So, the price of $275,000 on 14491 Rustling Leaves represents a $75,000 delta.  If the improvements can be made for less than that, the difference represents “sweat equity” for an investor.

Good rental demand.

Whether purchased as-is at $275,000 or updated at $350,000, these units in The Meadows are among the least expensive townhouse-style homes in Northern Virginia.   Additionally, they’re among the cheapest three bedroom properties in the area.  These are condo ownership (rather than fee-simple) but at $400, the condo fees are reasonable.

These units aren’t listed for rent very often but when they do, they fetch $2200 to $2400 per month on average.  In our view, this is a good yield, and the low condo fee doesn’t negatively impact the economics.  For families on a limited budget requiring multiple bedrooms, choices are limited, and this type of unit fits the bill.

Potential upside due to scarcity.

As mentioned earlier, low-priced 3-bedroom units are rare at this price range, and the supply is not materially increasing.  There is new construction in the area, concentrated mostly in the towns of Aldie, Ashburn, and Gainesville.  However, most new construction is more expensive and more luxurious than this property.

Additionally, the accessibility of this property is good.  The onramp to I-66 is only a few blocks away, and Route 29, Route 28, and Dulles Airport are all accessible.  The community itself is quiet and is only a short walk from shopping and entertainment.

For more information about 14491 Rustling Leaves or The Meadows condominium, contact Michael Gorman of RealtyPeople at [email protected].