3900 W County Road 700 S

Muncie, IN 47302

$85,000B

3 bd · 1.5 ba · 1,953 sqft · Built 1970 · SingleFamily · Active · 270 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,337/mo
• Mortgage (P&I): −$446
• Tax + insurance: −$144
• HOA: −$0
• Vac / Maint / Mgmt: −$281
• Net cashflow: $466/mo
• Annual: $5,594/yr
• Cap rate: 12.87%
• Cash-on-cash: 23.51%
• DSCR: 2.05
• 1% rule: 1.57%
• Cash to close: $23,800

Investor read

• This is a 3-bed/1.5-bath single-family listed at $85k. Condition is rated fair.
• At list price, monthly cash flow is $466 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $85k).
• It's been on market 270 days — a 12% lower offer ($75k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $75k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $588 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#18 in IN, #1,654 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime F, employment F.
• Cowan Community School Corporation (rural): math 32% / reading 40% proficiency, ranked #168 of 301 in IN (top 56%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Cowan Elementary School (math 37% / reading 33%, grade F, #590 of 994 statewide, top 60%, 429 students, 57% FRL); Cowan High School (math 27% / reading 52%, grade F, #221 of 369 statewide, top 63%, 362 students, 46% FRL) — zoned schools average 51% FRL vs 28% district-wide (24 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+6.1%/yr); 215 active listings in the ZIP; 171 units permitted in Delaware County in 2024 (57 in 5+ unit buildings).
• Delaware County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 6.1% rent growth), your $24k cash investment doubles in ~5 years — after that, you're playing with house money.
• Cap rate 12.9% vs local median 5.8% in Muncie — 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.
• This rent runs 34% of the median local income ($48k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 270 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?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Significant damage and wear are visible, indicating a major repair is needed.
• Moderate: exterior siding — The siding shows signs of wear and discoloration, requiring a moderate repair.
• Major: landscaping — The overgrown vegetation and lack of maintenance indicate a major repair is needed.
• Major: fencing — Sections of the fencing are missing or damaged, requiring a major repair.