407 Tennessee Walking Ln

Brooksburg, IN 40045

$189,900D

3 bd · 3.0 ba · 1,584 sqft · Built 2003 · Manufactured · Active · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,628/mo
• Mortgage (P&I): −$996
• Tax + insurance: −$383
• HOA: −$0
• Vac / Maint / Mgmt: −$342
• Net cashflow: $-93/mo
• Annual: $-1,114/yr
• Cap rate: 6.13%
• Cash-on-cash: -0.60%
• DSCR: 0.97
• 1% rule: 0.86%
• Cash to close: $53,172

Investor read

• This is a 3-bed/3.0-bath manufactured listed at $190k.
• At list price, monthly cash flow is $-93 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $176k (7.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $163k (14.3% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $163k (14.3% below list) — sets the bar for 1% rule.
• In year one you build about $2k of equity ($1k loan paydown + $463 appreciation (0.2% local appreciation)).
• Location reads 57/100 on livability (#611 in IN) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: employment D+, crime D, health & safety D.
• Carroll County (town): math 12% / reading 23% proficiency, ranked #163 of 165 in KY (top 99%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 3 units permitted in Carroll County in 2024 (0 in 5+ unit buildings).
• Carroll County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $100k; list at $190k implies a 90% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.

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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• Crime grade is D 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?
• 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?
• 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.