409 S South St

Brookston, IN 47923

$189,000D-

4 bd · 4.0 ba · 1,350 sqft · Built 1995 · MultiFamily · Active · 54 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,592/mo
• Mortgage (P&I): −$991
• Tax + insurance: −$315
• HOA: −$0
• Vac / Maint / Mgmt: −$334
• Net cashflow: $-48/mo
• Annual: $-581/yr
• Cap rate: 5.99%
• Cash-on-cash: -1.10%
• DSCR: 0.95
• 1% rule: 0.84%
• Cash to close: $52,920

Investor read

• This is a 2 × 1-bed/1.0-bath units multifamily listed at $189k. Condition is rated fair.
• At list price, monthly cash flow is $-48 ($-581/yr) — negative. Per door: $-24/mo.
• To cash-flow at today's rent, offer at most $182k (3.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $159k (15.8% below list).
• It's been on market 54 days — a 3% lower offer ($183k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $159k (15.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#130 in IN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Frontier School Corporation (rural): math 48% / reading 51% proficiency, ranked #52 of 301 in IN (top 17%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Frontier Elementary (math 57% / reading 52%, grade C, #197 of 994 statewide, top 22%, 380 students, 39% FRL); Frontier Jr-Sr High School (math 37% / reading 52%, grade F, #169 of 369 statewide, top 51%, 291 students, 35% FRL).
• Market conditions: 22 active listings in the ZIP; 47 units permitted in White County in 2024 (0 in 5+ unit buildings).
• White County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $21k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.

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 54 days. Have you received any prior offers? Is the seller open to a 16% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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?
• 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?

Repairs flagged (vision-AI assessment)

• Moderate: Brick siding — Weathered and discolored
• Moderate: Exterior paint — Needs touch-up