107 Ross St

Nicholasville, KY 40356

$275,000B

6 bd · 3.0 ba · 2,296 sqft · Built — · MultiFamily · Active · 135 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,120/mo
• Mortgage (P&I): −$1,442
• Tax + insurance: −$176
• HOA: −$0
• Vac / Maint / Mgmt: −$1,075
• Net cashflow: $2,426/mo
• Annual: $29,115/yr
• Cap rate: 16.88%
• Cash-on-cash: 37.81%
• DSCR: 2.68
• 1% rule: 1.86%
• Cash to close: $77,000

Investor read

• This is a 3 × 4-bed/3.0-bath units multifamily listed at $275k.
• At list price, monthly cash flow is $2k ($29k/yr) — positive. Per door: $809/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $275k).
• It's been on market 135 days — a 12% lower offer ($242k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $242k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#231 in KY) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: employment C-, amenities F, commute F.
• Jessamine County (town): math 31% / reading 45% proficiency, ranked #37 of 165 in KY (top 22%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Nicholasville Elementary School (math 26% / reading 38%, grade F, #348 of 676 statewide, top 55%, 455 students, 62% FRL); West Jessamine Middle School (math 32% / reading 53%, grade D-, #47 of 217 statewide, top 22%, 904 students, 48% FRL).
• Market conditions: Rents rising fast (+7.5%/yr); 496 active listings in the ZIP; 267 units permitted in Jessamine County in 2024 (9 in 5+ unit buildings).
• Jessamine County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $155k; list at $275k implies a 77% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 7.5% rent growth), your $77k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 16.9% vs local median 3.4% in Nicholasville — 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.
• At $5,120/mo this rent would consume 82% of the median local household income ($74k/yr) (locally 1186% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 135 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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 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.