Is 9717 Palermo Ave in Indianapolis city (balance), IN a good investment?

CashFlowRE grades it D+ with a 5.5% cap rate and $-229/mo modeled cash flow at a $327,990 list price. See the full underwriting and recommended offer on the page.

What is the cap rate for 9717 Palermo Ave?

The modeled cap rate is 5.5% — annual NOI divided by price, using CashFlowRE's rent and expense estimates.

What would this property rent for?

Estimated market rent is $2,580/month, from CashFlowRE's rent model.

D+ Composite 45.83

Why this score? — see what drove the D+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

ARV discount +15.0/15.0
Cash flow +9.5/30.0
Condition / age +4.8/5.0
Schools +4.5/10.0
Rent growth +4.0/5.0
1% rule +2.9/10.0
DSCR +2.7/10.0
Livability +2.5/5.0
Appreciation +0.0/10.0

$327,990

9717 Palermo Ave · Indianapolis city (balance), IN 46239

5 bd · 3.0 ba · 2,275 sqft · SingleFamily · 65 Days on market

Built 2026 Excellent condition $144/sqft · 23% below area Est $425k · 23% under

🖨 Deal sheet (PDF) 📄 Offer letter ✓ Due diligence

Listing remarks

Pick your interior design finishes and move into your new home this fall at Palermo Gardens, the lowest-priced new single-family homes in Franklin Township. You'll enjoy the space you need in our largest floorplan with 5 bedrooms and 3 baths.

Key facts

2nd floor loft
Pond views
2 parking spots

What this means for you Summary

Snapshot

This is a 5-bed/3.0-bath single-family listed at $328k. Condition is rated excellent.

Deal economics

At list price, monthly cash flow is $-229 ($-3k/yr) — negative.
To cash-flow at today's rent, offer at most $295k (10.1% below list).
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $258k (21.4% below list).
Recommended offer: $258k (21.4% below list) — sets the bar for 1% rule.
Cap rate 5.5% vs local median 4.5% in Indianapolis city (balance) — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

Location & tenants

Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
Franklin Township Community School Corporation (urban): math 42% / reading 47% proficiency, ranked #87 of 301 in IN (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Zoned schools: Franklin Central Junior High (math 31% / reading 40%, grade F, #162 of 330 statewide, top 49%, 1,711 students, 51% FRL); Franklin Central High School (math 41% / reading 69%, grade C, #77 of 369 statewide, top 21%, 3,319 students, 46% FRL) — zoned schools average 48% FRL vs 29% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
Market conditions: Rents rising fast (+6.1%/yr); 502 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals lingering (median 103d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 80% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,906 units permitted in Marion County in 2024 (621 in 5+ unit buildings).
This rent runs 31% of the median local income ($100k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
Marion County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

It's been on market 65 days — a 6% lower offer ($308k) is reasonable based on typical stale-listing flexibility.

Recommended offer $257,961 (21.4% below list)

Questions for the 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 65 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
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.
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.
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.

Investment metrics

1% rule: 0.79% ✗
Cap rate: 5.46%
Cash-on-cash: -2.99%
DSCR: 0.87
GRM: 10.6

CMA / ARV

ARV (median comp): $425,092
List price: $327,990
Delta: -22.84%
Verdict: UNDERPRICED
Comps: 20 within 1.0 mi

Show comp detail 8 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
9570 Vandergriff Rd	0.48mi	4/3.0 (-1)	2,176 (-4%)	2mo	$450,000	$207	64
10451 Pintail Ln	0.71mi	4/3.0 (-1)	2,302 (+1%)	5mo	$315,000	$137	56
4445 Wild Turkey Dr	0.72mi	5/3.0	2,424 (+6%)	3mo	$340,000	$140	54
10334 Deercrest Ln	0.58mi	4/2.5 (-1)	2,291 (+1%)	14mo	$338,000	$148	53
4328 Blue Note Dr	0.24mi	4/2.5 (-1)	2,516 (+11%)	21mo	$345,998	$138	46
10447 Pintail Ln	0.70mi	4/2.5 (-1)	2,322 (+2%)	14mo	$329,000	$142	45
10448 Pintail Ln	0.69mi	4/2.5 (-1)	2,512 (+10%)	14mo	$310,000	$123	31
10419 Pronghorn Ln	0.69mi	5/3.5	2,580 (+13%)	15mo	$350,000	$136	31

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 6.11% rent growth · sell at horizon

5-year hold

IRR: -17.9%
Equity multiple: 0.35×
Total profit: $-59,357
Equity at exit: $48,904

10-year hold

IRR: -5.0%
Equity multiple: 0.63×
Total profit: $-33,882
Equity at exit: $28,359

Cash invested: $91,837 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

Overall (STATE): 90 Strongly Landlord-Friendly
State Indiana: 90 Strongly Landlord-Friendly · R+11
County: — inherits STATE
City: — inherits STATE

10-day pay-or-quit; landlord-favorable; preempted.

Methodology + full state rankings →

Buyer's market Market conditions within 1.0 mi — comparable homes for sale

Active competition Active MLS

For sale now: 11 active · 3 under contract
Months of supply: 16.5 mo (6%/mo absorbed)
Median asking: $299,990 ($149/sqft)
Median days on market: 167 d
This list price: 64% of active listings are priced below it
ARV vs active asking: +25.5% above current asking $/sqft

Closed sales set the value; these active listings set current market conditions and a practical price ceiling.

ZIP-level market 46239

Home prices YoY: -29.2%
Rents YoY: 6.1%
Active inventory: 502
Price-to-rent: 10.6×

Monthly cashflow live

Estimated rent: $2,580 high interval (Pro) →
Mortgage (P&I): −$1,720
Tax est. 1.5%: −$410 /mo · $4,920/yr
Insurance: −$137
HOA: −$0
Lot rent: −$0
Vacancy / Maint / Mgmt: −$542
Net cashflow: $-229

Break-even live

Break-even rent $2,869

Max offer price $294,886

Occupancy floor —

Sensitivity live

Price	-10% $-2	-5% $-115	+0% $-229	+5% $-342	+10% $-455
Rent	-10% $-433	-5% $-331	+0% $-229	+5% $-127	+10% $-25
Rate	-1.0pp $-64	-0.5pp $-145	base $-229	+0.5pp $-314	+1.0pp $-400

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

Down payment: $81,998
Closing costs: $9,840
Club membership (one-time): —
Reserves months: —
Total cash needed: —

Loan-product check · same deal, 3 products live

Conventional

25% down · 7.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Personal DTI + credit; lowest rate.

DSCR

20% down · 8.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

No personal income docs; deal must DSCR.

Hard money

10% down · 12.0% · 12mo

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Short-term bridge; refi at stabilization.

Rent comps 5 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
4242 Indigo Walk Ln Indianapolis, IN	5.0	3.0	2787	$2,200	$0.79	67d	1	0.26mi
10303 Deercrest Ln Indianapolis, IN	4.0	2.5	2085	$2,336	$1.12	0d	1	0.53mi
4526 Wild Turkey Dr Indianapolis, IN	4.0	2.5	1880	$1,950	$1.04	103d	1	0.69mi
5824 Fire Opal Way Indianapolis, IN	5.0	3.5	2750	$2,950	$1.07	119d	1	1.10mi
8836 Kipling Dr Indianapolis, IN	4.0	2.5	1686	$2,200	$1.30	119d	1	1.38mi

Property features AI

Finance

Other: Address: 9717 Palermo Ave, Indianapolis IN 46239Listing status: ActiveLast modified: 2026-06-07
Financial info: List price $319,485

Exterior

Parking: 2 parking spaces
Utilities: Has cooling (central air)
Home design: Spec new-construction, Woodford plan
Exterior features: Living area of 2275

Interior

Bedrooms: 5 bedrooms
Bathrooms: 3 bathrooms
Heating & cooling: Central air conditioning
Interior features: Central air conditioning

Listing history 50 events

2026-08-11

days on market $327,990 Active 65 DOM
2026-08-10

days on market $327,990 Active 64 DOM
2026-08-09

days on market $327,990 Active 63 DOM
2026-08-08

days on market $327,990 Active 62 DOM
2026-08-07

days on market $327,990 Active 61 DOM
2026-08-06

days on market $327,990 Active 60 DOM
2026-08-05

days on market $327,990 Active 59 DOM
2026-08-04

days on market $327,990 Active 58 DOM
2026-08-03

days on market $327,990 Active 57 DOM
2026-07-31

days on market $327,990 Active 54 DOM
2026-07-30

days on market $327,990 Active 52 DOM
2026-07-28

days on market $327,990 Active 51 DOM
2026-07-26

days on market $327,990 Active 49 DOM
2026-07-24

days on market $327,990 Active 47 DOM
2026-07-23

days on market $327,990 Active 46 DOM
2026-07-22

days on market $327,990 Active 45 DOM
2026-07-21

days on market $327,990 Active 44 DOM
2026-07-20

days on market $327,990 Active 43 DOM
2026-07-18

days on market $327,990 Active 41 DOM
2026-07-18

days on market $327,990 Active 40 DOM
2026-07-16

days on market $327,990 Active 39 DOM
2026-07-15

days on market $327,990 Active 38 DOM
2026-07-14

days on market $327,990 Active 37 DOM
2026-07-13

days on market $327,990 Active 36 DOM
2026-07-13

days on market $327,990 Active 35 DOM
2026-07-11

days on market $327,990 Active 34 DOM
2026-07-10

days on market $327,990 Active 33 DOM
2026-07-09

days on market $327,990 Active 32 DOM
2026-07-07

days on market $327,990 Active 30 DOM
2026-07-06

days on market $327,990 Active 29 DOM
2026-07-05

days on market $327,990 Active 28 DOM
2026-07-03

days on market $327,990 Active 26 DOM
2026-07-02

days on market $327,990 Active 25 DOM
2026-07-01

days on market $327,990 Active 24 DOM
2026-06-30

days on market $327,990 Active 23 DOM
2026-06-29

days on market $327,990 Active 22 DOM
2026-06-28

price $327,990 Active 21 DOM
2026-06-28

days on market $319,485 Active 21 DOM
2026-06-27

days on market $319,485 Active 20 DOM
2026-06-26

days on market $319,485 Active 19 DOM
2026-06-24

days on market $319,485 Active 17 DOM
2026-06-22

days on market $319,485 Active 15 DOM
2026-06-21

days on market $319,485 Active 14 DOM
2026-06-18

days on market $319,485 Active 11 DOM
2026-06-17

days on market $319,485 Active 10 DOM
2026-06-16

days on market $319,485 Active 9 DOM
2026-06-15

days on market $319,485 Active 8 DOM
2026-06-13

days on market $319,485 Active 6 DOM
2026-06-09

days on market $319,485 Active 2 DOM
2026-06-08

remarks 664-char remark

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Nearby sold comps map

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Walkable amenities ~0.75 mi

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Taxation est. · year 1

Rental income: $30,955
− Mortgage interest: −$18,373
− Property taxes: −$4,920
− Insurance: −$1,640
− Repairs & maintenance: −$2,476
− Management: −$2,476
− Depreciation: −$9,542
Taxable loss: −$8,471

Your marginal tax rate % combined federal + state — saved on this device

Est. tax savings @ 24.0%: +$2,033
After-tax cash flow: $-712/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 6 photos

Excellent 95/100 None rehab

This home is in excellent condition with no visible repairs or maintenance needed. It is move-in ready and offers a great value for both resale and rental markets.

Value-add opportunities

Both Painting the exterior and interior walls — Fresh paint enhances curb appeal and interior aesthetics. ↑
Both Landscaping improvements — Enhanced landscaping can increase both resale and rental value. ↑
Both Adding smart home features — Smart home features can increase both resale and rental value by making the home more modern and convenient. ↑

F Composite school gradezoned avg 45/100

Zoned Schools

Middle Franklin Central Junior High F IN #162/330 Nat'l #7,347/14,009 High Franklin Central High School C IN #77/369 Nat'l #4,413/17,239

Schools (NCES district)

District: Franklin Township Community School Corporation
NCES district ID: 1803750
Math proficiency: 42% ▼ -12.00%
Reading proficiency: 47% ▼ -6.00%
Median HH income: $67,825
Composite: 39.91/100
National rank: #3852
State rank: #87 of 301 in IN

Livability — Indianapolis city (balance)

No livability data for this city. (Only ~50 U.S. cities are tracked.)

Census & demographics

Census place: Indianapolis city (balance), IN
County: Marion County · 1,025,572 people
City population: 881,119
Metro: Indianapolis-Carmel-Anderson, IN
Population (ZIP): 33,931
Household income: $100,331
Rent vs Own: 17.6% rent · 82.4% own
Severe rent burden: 7% of renters

Population outlook (Marion County) Hauer SSP2

Today (2025): 1,025,572 people
By 2030: 1,065,727 · +3.9%
By 2040: 1,141,577 · +11.3%
By 2050: 1,208,920 · +17.9%
By 2075: 1,367,288 · +33.3%
By 2100: 1,438,201 · +40.2%

Race, ethnicity, and origin ACS 2023

Neighborhood character: Diverse neighborhood (Simpson 0.61)
Race & ethnicity: White 57% Black 24% Hispanic / Latino 9% Two or more races 9% Asian 4%
Hispanic origin (detail): Mexican 6%
Common ancestry: Lithuanian 2% Slovak 2% Romanian 1%
Foreign-born: 7% · Canada, Philippines, China
Languages at home: 89% English-only · Spanish 6% Other Indo-European 2% Chinese 1%

Political lean MEDSL · Marion

2024 margin: Strong D (+27.7) · D 63.0% · R 35.3% · Other 1.7%
2008→2024 swing: -0.7pp no change · 2008: 28.4pp · 2024: 27.7pp
All cycles: 2024: D+27.7 2020: D+29.1 2016: D+22.8 2012: D+22.2 2008: D+28.4

Not yet ingested

Civics: —

Market trends

HPI YoY: ▼ -93.15%
Current HPI: 226.1965
Rent YoY: ▲ 6.11%
Metro: Indianapolis-Carmel-Anderson, IN
State GDP YoY: ▲ 2.90%
F500 in state: 18

Industry mix (Fortune 500 HQ in IN)

Industry	F500 HQs	Revenue
Industrial Machinery	2	$37B
#125 Cummins Columbus $33.4B #416 Allegion Dublin $3.6B
Healthcare	1	$177B
#20 Elevance Health Indianapolis $177.0B
Pharmaceuticals	1	$45B
#100 Eli Lilly Indianapolis $45.0B
Metals / Steel	1	$18B
#179 Steel Dynamics Fort Wayne $18.2B
Agriculture	1	$17B
#210 Corteva Agriscience Indianapolis $16.5B
Packaging	1	$12B
#474 Berry Global Group Evansville $12.3B

Cash-flow waterfall

monthly

Sold comps — $/sqft

last 12 mo · ≤1 mi

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