545 Lewis Bray Rd

Burnside, KY 42519

$287,500D

4 bd · 3.0 ba · 1,984 sqft · Built 1999 · SingleFamily · Active · 88 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,568/mo
• Mortgage (P&I): −$1,508
• Tax + insurance: −$249
• HOA: −$0
• Vac / Maint / Mgmt: −$329
• Net cashflow: $-518/mo
• Annual: $-6,221/yr
• Cap rate: 4.13%
• Cash-on-cash: -7.73%
• DSCR: 0.66
• 1% rule: 0.55%
• Cash to close: $80,500

Investor read

• This is a 4-bed/3.0-bath single-family listed at $288k.
• At list price, monthly cash flow is $-518 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $196k (31.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $157k (45.5% below list).
• It's been on market 88 days — a 6% lower offer ($270k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $157k (45.5% below list) — sets the bar for 1% rule.
• In year one you build about $17k of equity ($2k loan paydown + $15k appreciation (5.2% local appreciation)).
• Location reads 71/100 on livability (#141 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: schools D+, amenities F, commute F.
• Pulaski County (town): math 43% / reading 53% proficiency, ranked #17 of 165 in KY (top 10%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 84 active listings in the ZIP; 117 units permitted in Pulaski County in 2024 (50 in 5+ unit buildings).
• Current owner paid $97k; list at $288k implies a 197% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$42k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.1% vs local median 3.0% in Burnside — 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

• 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 88 days. Have you received any prior offers? Is the seller open to a 45% 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.