605 Cottage Ave · Anderson, IN 46012

$41,900

5 bd · 3.0 ba · 1,279 sqft · MultiFamily public records · 66 Days on market

Built 1890 4,712 sqft lot $33/sqft · 45% below area ↓ 10% since listing

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Why this score? — see what drove the B- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Rent growth +3.0/5.0
• Livability +3.0/5.0
• Condition / age +2.5/5.0
• Schools +1.6/10.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 1 unit. estimate disagrees with records

Listing remarks MLS

Good shell near Anderson University campus. Exterior has some recent updates with new vinyl siding and roof. Waiting for the right investor to finish off the project. Lots of options to carve out an amazing space! Potential to add square footage with attic space.

Key facts

• Attic space
• Vinyl siding
• New roof

Tags

• VINYL SIDING
• NEW ROOF
• ATTIC SPACE

What this means for you Summary

Snapshot

• This is a 5-bed/3.0-bath multifamily listed at $42k.

Deal economics

• At list price, monthly cash flow is $915 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $42k).
• Recommended offer: $39k (6.0% below list) — sets the bar for market timing.
• Cap rate 32.5% vs local median 6.5% in Anderson — 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.

Location & tenants

• Location reads 60/100 on livability (#521 in IN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: schools F, crime D-, amenities F.
• Anderson Community School Corporation (urban): math 15% / reading 23% proficiency, ranked #280 of 301 in IN (top 93%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 70% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+1.8%/yr); 159 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 184 units permitted in Madison County in 2024 (0 in 5+ unit buildings).
• This rent runs 32% of the median local income ($58k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $290 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Madison County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 1.8% rent growth), your $12k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 66 days — a 6% lower offer ($39k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: moderate flood risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $39,386 (6.0% below list)

Questions for the listing agent

1. It's been on market 66 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1890 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
7. 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.
8. 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.
9. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 3.69% ✓
• Cap rate: 32.50%
• Cash-on-cash: 93.61%
• DSCR: 5.17
• GRM: 2.3

CMA / ARV

• ARV (median comp): $113,505
• List price: $41,900
• Delta: -63.09%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 1.82% rent growth · sell at horizon

5-year hold

• IRR: 93.1%
• Equity multiple: 5.24×
• Total profit: $49,720
• Equity at exit: $6,247

10-year hold

• IRR: 95.7%
• Equity multiple: 10.48×
• Total profit: $111,222
• Equity at exit: $3,623

Cash invested: $11,732 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 90 Strongly Landlord-Friendly
• State Indiana: 90 Strongly Landlord-Friendly · R+11
• County: — inherits STATE
• City: — inherits STATE

10-day pay-or-quit; landlord-favorable; preempted.

Methodology + full state rankings →

ZIP-level market 46012

• Home prices YoY: -18.6%
• Rents YoY: 1.8%
• Active inventory: 159
• Price-to-rent: 2.3×

Monthly cashflow live

• Estimated rent: $1,545 medium
• Mortgage (P&I): −$220
• Tax from tax record: −$68 /mo · $816/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$324
• Net cashflow: $915

Break-even live

Break-even rent $386

Max offer price $41,900

Occupancy floor 36%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $10,475
• Closing costs: $1,257
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
535 Woodlawn Dr Anderson, IN	4.0	1.5	1128	$1,295	$1.15	23d	1	1.47mi
1222 Nichol Ave Unit 1 Anderson, IN	5.0	1.0	1350	$1,195	$0.89	16d	1	1.49mi

Listing history 16 events

1. 2026-06-18
   status $41,900 Pending 66 DOM
2. 2026-06-18
   days on market $41,900 Active 66 DOM
3. 2026-06-17
   days on market $41,900 Active 65 DOM
4. 2026-06-16
   days on market $41,900 Active 64 DOM
5. 2026-06-15
   days on market $41,900 Active 63 DOM
6. 2026-06-13
   days on market $41,900 Active 61 DOM
7. 2026-06-09
   days on market $41,900 Active 57 DOM
8. 2026-06-08
   days on market $41,900 Active 56 DOM
9. 2026-06-07
   days on market $41,900 Active 55 DOM
10. 2026-06-05
    days on market $41,900 Active 52 DOM
11. 2026-06-03
    days on market $41,900 Active 51 DOM
12. 2026-06-02
    days on market $41,900 Active 50 DOM
13. 2026-06-01
    days on market $41,900 Active 49 DOM
14. 2026-05-31
    days on market $41,900 Active 48 DOM
15. 2026-05-05
    price $44,900 264-char remark

    Show marketing remark (264 chars)

    Good shell near Anderson University campus. Exterior has some recent updates with new vinyl siding and roof. Waiting for the right investor to finish off the project. Lots of options to carve out an amazing space! Potential to add square footage with attic space.

16. 2026-04-13
    listed $49,900 Active 264-char remark

    Show marketing remark (264 chars)

    Good shell near Anderson University campus. Exterior has some recent updates with new vinyl siding and roof. Waiting for the right investor to finish off the project. Lots of options to carve out an amazing space! Potential to add square footage with attic space.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast IN · Partial reset (capped growth)

• Current annual tax: $816 · $68/mo
• Projected year-2 tax: $816 · $68/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 5/10 Major FEMA zone X (unshaded) · 24% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥100°F today · 18 d/yr by 30 yrs out
• 💨 Wind 2/10 Low 0% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $18,537
• − Mortgage interest: −$2,347
• − Property taxes: −$816
• − Insurance: −$210
• − Repairs & maintenance: −$1,483
• − Management: −$1,483
• − Depreciation: −$1,219
• Taxable income: $10,980
• Est. tax owed @ 24.0%: −$2,635
• After-tax cash flow: $8,347/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Anderson Community School Corporation
• NCES district ID: 1800150
• Math proficiency: 15% ▼ -14.00%
• Reading proficiency: 23% ▼ -7.00%
• Median HH income: $38,208
• Composite: 15.93/100
• National rank: #9250
• State rank: #280 of 301 in IN

Livability — Anderson

• Score: 60/100
• State rank: #521
• US rank: #18709

Category grades

Amenities F Commute F Cost of living A+ Crime D- Employment F Housing A+ Health & safety F User ratings C+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Anderson, IN
• County: Madison County · 69,445 people
• City population: 57,762
• Metro: Indianapolis-Carmel-Anderson, IN
• Population (ZIP): 20,855
• Household income: $58,041
• Rent vs Own: 32.3% rent · 67.7% own
• Severe rent burden: 987.0

Population outlook (Madison County) Hauer SSP2

• Today (2025): 125,800 people
• By 2030: 122,640 · -2.5%
• By 2040: 115,420 · -8.3%
• By 2050: 108,148 · -14.0%
• By 2075: 91,838 · -27.0%
• By 2100: 75,670 · -39.8%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (85%)
• Race & ethnicity: White 85% Hispanic / Latino 5% Two or more races 4% Black 4%
• Hispanic origin (detail): Mexican 4%
• Common ancestry: Slovak 3% Serbian 2% Italian 1%
• Foreign-born: 2% · Canada, Vietnam
• Languages at home: 96% English-only · Spanish 3%

Political lean MEDSL · Madison

• 2024 margin: Strong R (+26.9) · D 35.6% · R 62.5% · Other 1.9%
• 2008→2024 swing: -33.5pp toward R · 2008: 6.5pp · 2024: -26.9pp
• All cycles: 2024: R+26.9 2020: R+22.6 2016: R+25.7 2012: R+4.5 2008: D+6.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -61.16%
• Current HPI: 266.9819
• Rent YoY: ▲ 1.82%
• Metro: Indianapolis-Carmel-Anderson, IN
• State GDP YoY: ▲ 2.90%
• F500 in state: 18

Industry mix (Fortune 500 HQ in IN)

Industry	F500 HQs	Revenue
▸Industrial Machinery	2	$37B
▸Healthcare	1	$177B
▸Pharmaceuticals	1	$45B
▸Metals / Steel	1	$18B
▸Agriculture	1	$17B
▸Packaging	1	$12B

Price history

-10.0% since first listed

2 events — show timeline

• 2026-05-05 Price Changed $44,900 MIBOR as Distributed by MLS Grid
• 2026-04-13 Listed $49,900 MIBOR as Distributed by MLS Grid

Property tax history

+6.7%/yr

Latest (2024): $816 · +13.6% YoY. Source: county tax records.