101 Ilhardt Ave

Nicholasville, KY 40356

$89,000B

2 bd · 1.0 ba · 1,265 sqft · Built — · Other · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,689/mo
• Mortgage (P&I): −$467
• Tax + insurance: −$90
• HOA: −$0
• Vac / Maint / Mgmt: −$355
• Net cashflow: $778/mo
• Annual: $9,334/yr
• Cap rate: 16.78%
• Cash-on-cash: 37.46%
• DSCR: 2.67
• 1% rule: 1.90%
• Cash to close: $24,920

Investor read

• This is a 2-bed/1.0-bath other listed at $89k.
• At list price, monthly cash flow is $778 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $89k).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $615 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#231 in KY) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: employment C-, amenities F, commute F.
• Jessamine County (town): math 31% / reading 45% proficiency, ranked #37 of 165 in KY (top 22%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Brookside Elementary School (math 36% / reading 32%, grade F, #329 of 676 statewide, top 49%, 514 students, 57% FRL); East Jessamine Middle School (math 23% / reading 44%, grade F, #105 of 217 statewide, top 51%, 936 students, 56% FRL); East Jessamine High School (math 26% / reading 38%, grade F, #97 of 254 statewide, top 46%, 1,173 students, 57% FRL).
• Market conditions: Rents rising fast (+7.5%/yr); 502 active listings in the ZIP; 11 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 267 units permitted in Jessamine County in 2024 (9 in 5+ unit buildings).
• Jessamine County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 7.5% rent growth), your $25k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 16.8% vs local median 3.4% in Nicholasville — 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

• 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?
• 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.