813 White St

Cumberland, KY 40823

$58,400B

2 bd · 1.0 ba · 1,160 sqft · Built 1940 · Other · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $999/mo
• Mortgage (P&I): −$306
• Tax + insurance: −$62
• HOA: −$0
• Vac / Maint / Mgmt: −$210
• Net cashflow: $421/mo
• Annual: $5,052/yr
• Cap rate: 14.94%
• Cash-on-cash: 30.89%
• DSCR: 2.37
• 1% rule: 1.71%
• Cash to close: $16,352

Investor read

• This is a 2-bed/1.0-bath other listed at $58k.
• At list price, monthly cash flow is $421 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($999 rent vs $58k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-2.7%/yr); year-one equity from $404 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#263 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Harlan County (rural): math 16% / reading 35% proficiency, ranked #149 of 165 in KY (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 65% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Cumberland Elementary School (math 18% / reading 35%, grade F, #469 of 676 statewide, top 70%, 449 students, 84% FRL); Harlan County High School (math 17% / reading 27%, grade F, #202 of 254 statewide, top 82%, 997 students, 80% FRL) — zoned schools average 82% FRL vs 65% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 17 active listings in the ZIP.
• Harlan County population projected at -34% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $26k; list at $58k implies a 125% gain — meaningful room to come down on a strong offer.
• At projected returns (-2.7% appreciation + 3.0% rent growth), your $16k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1940 — 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 F-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 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.