235 Railroad St

Island, KY 42350

$59,900B

2 bd · 1.0 ba · 1,264 sqft · Built 1964 · SingleFamily · Active · 277 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,058/mo
• Mortgage (P&I): −$314
• Tax + insurance: −$42
• HOA: −$0
• Vac / Maint / Mgmt: −$222
• Net cashflow: $480/mo
• Annual: $5,759/yr
• Cap rate: 15.91%
• Cash-on-cash: 34.33%
• DSCR: 2.53
• 1% rule: 1.77%
• Cash to close: $16,772

Investor read

• This is a 2-bed/1.0-bath single-family listed at $60k.
• At list price, monthly cash flow is $480 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $60k).
• It's been on market 277 days — a 12% lower offer ($53k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $53k (12.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($414 loan paydown + $1k appreciation (2.3% local appreciation)).
• Location reads 57/100 on livability (#439 in KY) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Mclean County (rural): math 34% / reading 45% proficiency, ranked #34 of 165 in KY (top 21%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Livermore Elementary School (math 22% / reading 47%, grade F, #301 of 676 statewide, top 48%, 227 students, 64% FRL); Mclean County Middle School (math 30% / reading 41%, grade F, #94 of 217 statewide, top 44%, 319 students, 53% FRL); Mclean County High School (math 32% / reading 42%, grade F, #58 of 254 statewide, top 27%, 413 students, 48% FRL).
• Market conditions: 2 active listings in the ZIP; 1 units permitted in McLean County in 2024 (0 in 5+ unit buildings).
• McLean County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts 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 $23k; list at $60k implies a 163% gain — meaningful room to come down on a strong offer.
• At projected returns (2.3% appreciation + 3.0% rent growth), your $17k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 277 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1964 — 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 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?
• 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.