2061 Derby Way

Memphis, IN 47143

$277,990D-

4 bd · 2.5 ba · 2,014 sqft · Built 2026 · SingleFamily · Pending · 52 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,378/mo
• Mortgage (P&I): −$1,458
• Tax + insurance: −$463
• HOA: −$29
• Vac / Maint / Mgmt: −$499
• Net cashflow: $-71/mo
• Annual: $-854/yr
• Cap rate: 5.99%
• Cash-on-cash: -1.10%
• DSCR: 0.95
• 1% rule: 0.86%
• Cash to close: $77,837

Investor read

• This is a 4-bed/2.5-bath single-family listed at $278k.
• At list price, monthly cash flow is $-71 ($-854/yr) — negative.
• To cash-flow at today's rent, offer at most $268k (3.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $238k (14.4% below list).
• It's been on market 52 days — a 3% lower offer ($270k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $238k (14.4% below list) — sets the bar for 1% rule.
• 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 70/100 on livability (#164 in IN) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Zoned schools: Henryville Elementary School (math 30% / reading 33%, grade F, #678 of 994 statewide, top 68%, 647 students, 43% FRL); Henryville Jr & Sr High School (math 29% / reading 45%, grade F, #247 of 369 statewide, top 70%, 461 students, 32% FRL).
• Market conditions: 94 active listings in the ZIP; 911 units permitted in Clark County in 2024 (133 in 5+ unit buildings).
• Clark County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 6.0% vs local median 5.0% in Memphis — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 52 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.