206 E Main St

New Market, IN 47965

$177,900C-

4 bd · 1.5 ba · 2,492 sqft · Built 1956 · SingleFamily · Active · 103 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,368/mo
• Mortgage (P&I): −$933
• Tax + insurance: −$174
• HOA: −$0
• Vac / Maint / Mgmt: −$287
• Net cashflow: $-27/mo
• Annual: $-322/yr
• Cap rate: 6.11%
• Cash-on-cash: -0.65%
• DSCR: 0.97
• 1% rule: 0.77%
• Cash to close: $49,812

Investor read

• This is a 4-bed/1.5-bath single-family listed at $178k.
• At list price, monthly cash flow is $-27 ($-322/yr) — negative.
• To cash-flow at today's rent, offer at most $173k (2.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $137k (23.1% below list).
• It's been on market 103 days — a 9% lower offer ($162k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $137k (23.1% below list) — sets the bar for 1% rule.
• In year one you build about $1k of equity ($1k loan paydown + $132 appreciation (0.1% local appreciation)).
• Location reads 66/100 on livability (#297 in IN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• South Montgomery Community School Corporation (rural): math 52% / reading 49% proficiency, ranked #46 of 301 in IN (top 15%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: New Market Elementary School (math 67% / reading 49%, grade C+, #160 of 994 statewide, top 17%, 471 students, 42% FRL); Southmont Jr High School (math 42% / reading 47%, grade D, #84 of 330 statewide, top 26%, 376 students, 40% FRL); Southmont Sr High School (math 32% / reading 62%, grade D-, #143 of 369 statewide, top 44%, 477 students, 39% FRL).
• Watch-outs: built in 1956 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 4 active listings in the ZIP; 52 units permitted in Montgomery County in 2024 (0 in 5+ unit buildings).
• Montgomery County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts since 5y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $138k; 29% above their basis — modest negotiation headroom, anchor on the comps not their cost.

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?
• It's been on market 103 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• Built in 1956 — 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 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.