418 Powell St

Benton, KY 42025

$227,500D

3 bd · 1.0 ba · 1,224 sqft · Built 1993 · Other · Active · 211 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,709/mo
• Mortgage (P&I): −$1,193
• Tax + insurance: −$219
• HOA: −$0
• Vac / Maint / Mgmt: −$359
• Net cashflow: $-62/mo
• Annual: $-749/yr
• Cap rate: 5.96%
• Cash-on-cash: -1.18%
• DSCR: 0.95
• 1% rule: 0.75%
• Cash to close: $63,700

Investor read

• This is a 3-bed/1.0-bath other listed at $228k.
• At list price, monthly cash flow is $-62 ($-749/yr) — negative.
• To cash-flow at today's rent, offer at most $216k (4.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $171k (24.9% below list).
• It's been on market 211 days — a 12% lower offer ($200k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $171k (24.9% below list) — sets the bar for 1% rule.
• In year one you build about $24k of equity ($2k loan paydown + $23k appreciation (10.0% local appreciation)).
• Location reads 69/100 on livability (#171 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Marshall County (rural): math 29% / reading 38% proficiency, ranked #73 of 165 in KY (top 44%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Calvert City Elementary School (math 32% / reading 42%, grade F, #255 of 676 statewide, top 42%, 281 students, 63% FRL); North Marshall Middle School (math 31% / reading 44%, grade F, #73 of 217 statewide, top 36%, 497 students, 45% FRL); Marshall County High School (math 26% / reading 30%, grade F, #151 of 254 statewide, top 61%, 1,256 students, 43% FRL).
• Market conditions: 178 active listings in the ZIP; 121 units permitted in Marshall County in 2024 (5 in 5+ unit buildings).
• Marshall County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts since 8y ago; this cycle's ask has dropped $22k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $120k; list at $228k implies a 90% gain — meaningful room to come down on a strong offer.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $64k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$39k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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 6.0% vs local median 4.9% in Benton — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 211 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• 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.
• 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.