315 E Main St

Earlington, KY 42410

$120,000C+

5 bd · 2.0 ba · 3,468 sqft · Built 1905 · SingleFamily · Pending · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,309/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$131
• HOA: −$0
• Vac / Maint / Mgmt: −$275
• Net cashflow: $275/mo
• Annual: $3,294/yr
• Cap rate: 9.04%
• Cash-on-cash: 9.80%
• DSCR: 1.44
• 1% rule: 1.09%
• Cash to close: $33,600

Investor read

• This is a 5-bed/2.0-bath single-family listed at $120k.
• At list price, monthly cash flow is $275 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $120k).
• It's been on market 27 days — a 2% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $118k (1.5% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($830 loan paydown + $2k appreciation (1.9% local appreciation)).
• Location reads 69/100 on livability (#175 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A-; Watch: amenities F, commute F, employment D-.
• Hopkins County (town): math 27% / reading 43% proficiency, ranked #65 of 165 in KY (top 39%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Earlington Elementary School (math 47% / reading 52%, grade D, #100 of 676 statewide, top 16%, 277 students, 69% FRL); South Hopkins Middle School (math 23% / reading 37%, grade F, #146 of 217 statewide, top 69%, 365 students, 59% FRL); Hopkins County Central High School (math 22% / reading 37%, grade F, #127 of 254 statewide, top 58%, 774 students, 58% FRL).
• Watch-outs: built in 1905 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 8 active listings in the ZIP; 122 units permitted in Hopkins County in 2024 (0 in 5+ unit buildings).
• Hopkins County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $98k; 23% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (1.9% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~5 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1905 — 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.
• 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.