Lancia's Cottage Plan

Fort Wayne, IN 46845

$303,900F

4 bd · 2.5 ba · 2,615 sqft · Built — · SingleFamily · Active · 300 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,925/mo
• Mortgage (P&I): −$2,372
• Tax + insurance: −$754
• HOA: −$50
• Vac / Maint / Mgmt: −$614
• Net cashflow: $-865/mo
• Annual: $-10,377/yr
• Cap rate: 4.00%
• Cash-on-cash: -8.19%
• DSCR: 0.64
• 1% rule: 0.65%
• Cash to close: $126,623

Investor read

• This is a 4-bed/2.5-bath single-family listed at $304k. Condition is rated poor.
• At list price, monthly cash flow is $-865 ($-10k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $292k (3.8% below list).
• It's been on market 300 days — a 12% lower offer ($267k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $267k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#6 in IN, #676 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime C-, schools D+, employment D+.
• Northwest Allen County Schools (rural): math 51% / reading 58% proficiency, ranked #25 of 301 in IN (top 8%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 11% free/reduced lunch — higher-income household profile.
• Market conditions: Rents rising fast (+10.5%/yr); 220 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 1,861 units permitted in Allen County in 2024 (576 in 5+ unit buildings).
• Allen County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• This rent runs 31% of the median local income ($113k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 300 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?
• 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 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?

Repairs flagged (vision-AI assessment)

• Major: roof — The satellite image suggests significant damage.
• Major: exterior siding — The siding appears worn and faded.
• Major: exterior paint — The paint is faded and peeling.
• Major: landscaping — The landscaping is sparse and in need of maintenance.