6747 Old Henderson Spottsville Rd

Spottsville, KY 42458

$155,000D

3 bd · 1.0 ba · 1,262 sqft · Built 1976 · SingleFamily · Pending

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,122/mo
• Mortgage (P&I): −$813
• Tax + insurance: −$112
• HOA: −$0
• Vac / Maint / Mgmt: −$236
• Net cashflow: $-38/mo
• Annual: $-462/yr
• Cap rate: 6.00%
• Cash-on-cash: -1.06%
• DSCR: 0.95
• 1% rule: 0.72%
• Cash to close: $43,400

Investor read

• This is a 3-bed/1.0-bath single-family listed at $155k.
• At list price, monthly cash flow is $-38 ($-462/yr) — negative.
• To cash-flow at today's rent, offer at most $148k (4.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $112k (27.6% below list).
• Only 0 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $112k (27.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#280 in KY) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, crime B+; Watch: amenities F, commute F, health & safety F.
• Henderson County (suburban): math 40% / reading 41% proficiency, ranked #29 of 165 in KY (top 18%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Spottsville Elementary School (math 56% / reading 57%, grade C+, #57 of 676 statewide, top 9%, 547 students, 40% FRL); Henderson County North Middle School (math 37% / reading 43%, grade F, #59 of 217 statewide, top 29%, 720 students, 54% FRL); Henderson County High School (math 33% / reading 33%, grade F, #94 of 254 statewide, top 37%, 1,958 students, 44% FRL).
• Market conditions: 4 active listings in the ZIP; 92 units permitted in Henderson County in 2024 (0 in 5+ unit buildings).
• Henderson County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — 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?
• Built in 1976 — 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.
• 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.