2070 Squiresville Rd

Gratz, KY 40359

$48,000B+

2 bd · 2.0 ba · 1,120 sqft · Built 1993 · Other · Pending · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $901/mo
• Mortgage (P&I): −$252
• Tax + insurance: −$164
• HOA: −$0
• Vac / Maint / Mgmt: −$189
• Net cashflow: $296/mo
• Annual: $3,558/yr
• Cap rate: 13.70%
• Cash-on-cash: 26.47%
• DSCR: 2.18
• 1% rule: 1.88%
• Cash to close: $13,440

Investor read

• This is a 2-bed/2.0-bath other listed at $48k.
• At list price, monthly cash flow is $296 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($901 rent vs $48k).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $5k of equity ($332 loan paydown + $5k appreciation (10.0% local appreciation)).
• Location reads 64/100 on livability (#281 in KY) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Owen County (rural): math 24% / reading 32% proficiency, ranked #120 of 165 in KY (top 73%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Owen County Elementary/Primary School (math 27% / reading 35%, grade F, #378 of 676 statewide, top 57%, 690 students, 62% FRL); Maurice Bowling Middle School (math 22% / reading 33%, grade F, #168 of 217 statewide, top 78%, 484 students, 62% FRL); Owen County High School (math 27% / reading 27%, grade F, #158 of 254 statewide, top 68%, 558 students, 53% FRL).
• Watch-outs: property tax is 3.6% of price.
• Market conditions: 100 active listings in the ZIP; 18 units permitted in Owen County in 2024 (0 in 5+ unit buildings).
• Owen County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 6 sale attempts since 15y ago 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.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.