6600 Saloma Rd

Campbellsville, KY 42718

$199,900D-

3 bd · 1.0 ba · 1,104 sqft · Built 1951 · Other · Pending · 85 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,425/mo
• Mortgage (P&I): −$1,048
• Tax + insurance: −$166
• HOA: −$0
• Vac / Maint / Mgmt: −$299
• Net cashflow: $-88/mo
• Annual: $-1,058/yr
• Cap rate: 5.76%
• Cash-on-cash: -1.89%
• DSCR: 0.92
• 1% rule: 0.71%
• Cash to close: $55,972

Investor read

• This is a 3-bed/1.0-bath other listed at $200k.
• At list price, monthly cash flow is $-88 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $184k (7.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $142k (28.7% below list).
• It's been on market 85 days — a 6% lower offer ($188k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $142k (28.7% 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 76/100 on livability (#94 in KY, #3,786 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities D+, commute F, employment F.
• Taylor County (town): math 26% / reading 42% proficiency, ranked #71 of 165 in KY (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Taylor County Primary Center (717 students, 53% FRL); Taylor County Middle School (math 21% / reading 48%, grade F, #99 of 217 statewide, top 47%, 601 students, 52% FRL); Taylor County High School (math 22% / reading 37%, grade F, #127 of 254 statewide, top 58%, 817 students, 47% FRL).
• Watch-outs: built in 1951 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 186 active listings in the ZIP; 10 units permitted in Taylor County in 2024 (0 in 5+ unit buildings).
• Taylor County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 5.8% vs local median 3.7% in Campbellsville — 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.

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 85 days. Have you received any prior offers? Is the seller open to a 29% concession, seller financing, or rate buy-down credit?
• Built in 1951 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.