85 N Main St

Walton, KY 41094

$374,900B-

None bd · None ba · 8,120 sqft · Built 1970 · MultiFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,760/mo
• Mortgage (P&I): −$1,966
• Tax + insurance: −$547
• HOA: −$0
• Vac / Maint / Mgmt: −$2,260
• Net cashflow: $5,987/mo
• Annual: $71,844/yr
• Cap rate: 25.46%
• Cash-on-cash: 68.44%
• DSCR: 4.05
• 1% rule: 2.87%
• Cash to close: $104,972

Investor read

• This is a 7×2bd/1ba + 3×1bd/1ba units multifamily listed at $375k.
• At list price, monthly cash flow is $6k ($72k/yr) — positive. Per door: $599/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $375k).
• It's been on market 20 days — a 2% lower offer ($369k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $369k (1.5% 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 $11k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#115 in KY, #4,981 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Walton-Verona Independent (rural): math 37% / reading 48% proficiency, ranked #23 of 165 in KY (top 14%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Walton-Verona Elementary School (math 52% / reading 48%, grade D+, #98 of 676 statewide, top 15%, 734 students, 38% FRL); Walton-Verona Middle School (math 31% / reading 49%, grade F, #59 of 217 statewide, top 29%, 547 students, 34% FRL); Walton-Verona High School (math 37% / reading 42%, grade F, #40 of 254 statewide, top 19%, 549 students, 30% FRL) — zoned schools at 34% FRL track the district average.
• Market conditions: 183 active listings in the ZIP; 1,430 units permitted in Boone County in 2024 (928 in 5+ unit buildings).
• Boone County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts; this cycle's ask has dropped $125k (25%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $250k; 50% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $105k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 25.5% vs local median 2.8% in Walton — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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 B-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?
• 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.