21818 State Route 3

Cannonsburg, KY 41168

$59,900B

2 bd · 1.0 ba · 980 sqft · Built 1974 · Other · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $880/mo
• Mortgage (P&I): −$314
• Tax + insurance: −$166
• HOA: −$0
• Vac / Maint / Mgmt: −$185
• Net cashflow: $215/mo
• Annual: $2,580/yr
• Cap rate: 11.93%
• Cash-on-cash: 20.14%
• DSCR: 1.90
• 1% rule: 1.47%
• Cash to close: $16,772

Investor read

• This is a 2-bed/1.0-bath other listed at $60k.
• At list price, monthly cash flow is $215 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($880 rent vs $60k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $316 of equity ($414 loan paydown + $-98 appreciation (-0.2% local appreciation)).
• Location reads 69/100 on livability (#168 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Boyd County (suburban): math 20% / reading 37% proficiency, ranked #115 of 165 in KY (top 70%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Ponderosa Elementary School (math 27% / reading 42%, grade F, #301 of 676 statewide, top 48%, 324 students, 54% FRL); Boyd County Middle School (math 18% / reading 39%, grade F, #161 of 217 statewide, top 75%, 620 students, 55% FRL); Boyd County High School (math 27% / reading 37%, grade F, #97 of 254 statewide, top 46%, 911 students, 52% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 12 active listings in the ZIP; 2 units permitted in Boyd County in 2024 (0 in 5+ unit buildings).
• Boyd County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts 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 (-0.2% appreciation + 3.0% rent growth), your $17k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk; major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.9% vs local median 3.3% in Cannonsburg — 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.
• This rent is only 14% of the median local income ($74k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Questions for listing agent

• Built in 1974 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.