7727 Mount Eden Rd

Shelbyville, KY 40065

$80,000B-

2 bd · 1.0 ba · 1,250 sqft · Built — · SingleFamily · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,536/mo
• Mortgage (P&I): −$420
• Tax + insurance: −$80
• HOA: −$0
• Vac / Maint / Mgmt: −$323
• Net cashflow: $714/mo
• Annual: $8,572/yr
• Cap rate: 17.01%
• Cash-on-cash: 38.27%
• DSCR: 2.70
• 1% rule: 1.92%
• Cash to close: $22,400

Investor read

• This is a 2-bed/1.0-bath single-family listed at $80k.
• At list price, monthly cash flow is $714 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $80k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $553 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#101 in KY, #4,143 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities F, commute F.
• Shelby County (town): math 26% / reading 37% proficiency, ranked #77 of 165 in KY (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Heritage Elementary (math 44% / reading 46%, grade D-, #143 of 676 statewide, top 22%, 431 students, 46% FRL); Shelby County East Middle School (math 26% / reading 44%, grade F, #98 of 217 statewide, top 45%, 552 students, 47% FRL); Shelby County High School (math 24% / reading 36%, grade F, #122 of 254 statewide, top 49%, 994 students, 50% FRL) — zoned schools at 48% FRL track the district average.
• Market conditions: 298 active listings in the ZIP; solid renter incomes; 237 units permitted in Shelby County in 2024 (0 in 5+ unit buildings).
• Shelby County population projected at +34% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 17.0% vs local median 3.5% in Shelbyville — 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.

Questions for listing agent

• 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?
• 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.