624 Husbands St

Paducah, KY 42003

$40,000D

3 bd · 2.0 ba · 1,458 sqft · Built 1902 · SingleFamily · Active · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,707/mo
• Mortgage (P&I): −$210
• Tax + insurance: −$32
• HOA: −$0
• Vac / Maint / Mgmt: −$358
• Net cashflow: $1,106/mo
• Annual: $13,278/yr
• Cap rate: 39.49%
• Cash-on-cash: 118.55%
• DSCR: 6.27
• 1% rule: 4.27%
• Cash to close: $11,200

Investor read

• This is a 3-bed/2.0-bath single-family listed at $40k.
• At list price, monthly cash flow is $1k ($13k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $40k).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $277 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#197 in KY) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime C-, employment D, amenities F.
• Paducah Independent (town): math 22% / reading 36% proficiency, ranked #122 of 165 in KY (top 74%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Morgan Elementary School (math 17% / reading 22%, grade F, #572 of 676 statewide, top 88%, 380 students, 89% FRL); Paducah Middle School (math 19% / reading 36%, grade F, #168 of 217 statewide, top 78%, 652 students, 69% FRL); Paducah Tilghman High School (math 22% / reading 42%, grade F, #97 of 254 statewide, top 46%, 878 students, 64% FRL) — zoned schools at 74% FRL track the district average.
• Watch-outs: built in 1902 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 268 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 187 units permitted in McCracken County in 2024 (104 in 5+ unit buildings).
• McCracken County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 39.5% vs local median 4.5% in Paducah — 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

• Built in 1902 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-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.