408 N Jefferson St

Converse, IN 46919

$715,000B

252 bd · 196.0 ba · 4,200 sqft · Built 1970 · MultiFamily · Active · 19 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $11,429/mo
• Mortgage (P&I): −$3,750
• Tax + insurance: −$643
• HOA: −$0
• Vac / Maint / Mgmt: −$2,400
• Net cashflow: $4,636/mo
• Annual: $55,634/yr
• Cap rate: 14.07%
• Cash-on-cash: 27.79%
• DSCR: 2.24
• 1% rule: 1.60%
• Cash to close: $200,200

Investor read

• This is a 14 × 1-bed/1-bath units multifamily listed at $715k.
• At list price, monthly cash flow is $5k ($56k/yr) — positive. Per door: $331/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $715k).
• It's been on market 19 days — a 2% lower offer ($704k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $704k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-1.8%/yr); year-one equity from $5k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#289 in IN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety D-.
• Oak Hill United School Corporation (rural): math 40% / reading 50% proficiency, ranked #96 of 301 in IN (top 32%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Oak Hill Junior High School (math 41% / reading 52%, grade D+, #72 of 330 statewide, top 22%, 269 students, 42% FRL); Oak Hill High School (math 32% / reading 72%, grade D+, #106 of 369 statewide, top 31%, 537 students, 38% FRL).
• Market conditions: 12 active listings in the ZIP; 35 units permitted in Miami County in 2024 (0 in 5+ unit buildings).
• Miami County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-1.8% appreciation + 3.0% rent growth), your $200k cash investment doubles in ~4 years — after that, you're playing with house money.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1970 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.