1698 Dry Creek Rd

Wheelwright, KY 41862

$140,000C-

3 bd · 1.0 ba · 1,848 sqft · Built 1994 · SingleFamily · Active · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,112/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$171
• HOA: −$0
• Vac / Maint / Mgmt: −$234
• Net cashflow: $-26/mo
• Annual: $-314/yr
• Cap rate: 6.64%
• Cash-on-cash: 1.23%
• DSCR: 1.05
• 1% rule: 0.79%
• Cash to close: $39,200

Investor read

• This is a 3-bed/1.0-bath single-family listed at $140k.
• At list price, monthly cash flow is $-26 ($-314/yr) — negative.
• To cash-flow at today's rent, offer at most $135k (3.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $111k (20.6% below list).
• It's been on market 28 days — a 2% lower offer ($138k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $111k (20.6% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($968 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 57/100 on livability (#447 in KY) — a working-class tenant base; expect higher turnover. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Knott County (rural): math 23% / reading 39% proficiency, ranked #109 of 165 in KY (top 66%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Carr Creek Elementary School (math 29% / reading 47%, grade F, #242 of 676 statewide, top 37%, 360 students, 74% FRL); Knott County Central High School (math 22% / reading 32%, grade F, #158 of 254 statewide, top 68%, 552 students, 68% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 5 active listings in the ZIP.
• Knott County population projected at -28% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $35k; list at $140k implies a 300% gain — meaningful room to come down on a strong offer.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $39k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.

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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.