3535 State Route 2837

Wheatcroft, KY 42404

$140,000D+

3 bd · 2.0 ba · 1,333 sqft · Built 2011 · Other · Pending · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,085/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$89
• HOA: −$0
• Vac / Maint / Mgmt: −$228
• Net cashflow: $34/mo
• Annual: $406/yr
• Cap rate: 6.58%
• Cash-on-cash: 1.04%
• DSCR: 1.05
• 1% rule: 0.77%
• Cash to close: $39,200

Investor read

• This is a 3-bed/2.0-bath other listed at $140k.
• At list price, monthly cash flow is $34 ($406/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $108k (22.5% below list).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $108k (22.5% below list) — sets the bar for 1% rule.
• In year one you build about $15k of equity ($968 loan paydown + $14k appreciation (10.0% local appreciation)).
• Location reads 58/100 on livability (#436 in KY) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime C-, employment D, amenities F.
• Webster County (rural): math 25% / reading 34% proficiency, ranked #114 of 165 in KY (top 69%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Clay Elementary School (math 37% / reading 42%, grade F, #208 of 676 statewide, top 34%, 194 students, 65% FRL); Webster County Middle School (math 22% / reading 36%, grade F, #156 of 217 statewide, top 74%, 315 students, 66% FRL); Webster County High School (math 22% / reading 27%, grade F, #179 of 254 statewide, top 78%, 676 students, 61% FRL).
• Market conditions: 19 active listings in the ZIP; 6 units permitted in Webster County in 2024 (0 in 5+ unit buildings).
• Webster County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $20k; list at $140k implies a 618% gain — meaningful room to come down on a strong offer.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $39k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 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.
• 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.