3001 N Erwin Rd

West Lafayette, IN 47906

$250,000D

3 bd · 2.0 ba · 1,772 sqft · Built 2003 · MultiFamily · Pending · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,141/mo
• Mortgage (P&I): −$1,311
• Tax + insurance: −$434
• HOA: −$0
• Vac / Maint / Mgmt: −$450
• Net cashflow: $-54/mo
• Annual: $-647/yr
• Cap rate: 6.03%
• Cash-on-cash: -0.92%
• DSCR: 0.96
• 1% rule: 0.86%
• Cash to close: $70,000

Investor read

• This is a 3-bed/2.0-bath multifamily listed at $250k.
• At list price, monthly cash flow is $-54 ($-647/yr) — negative.
• To cash-flow at today's rent, offer at most $240k (3.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $214k (14.4% below list).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $214k (14.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 90/100 on livability (#1 in IN, #74 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, commute A+; Watch: housing C-, employment D.
• Tippecanoe School Corporation (rural): math 44% / reading 49% proficiency, ranked #80 of 301 in IN (top 27%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Klondike Elementary School (math 46% / reading 44%, grade D-, #374 of 994 statewide, top 38%, 981 students, 39% FRL); Klondike Middle School (math 45% / reading 57%, grade C, #40 of 330 statewide, top 12%, 465 students, 36% FRL); William Henry Harrison High School (math 53% / reading 73%, grade B-, #39 of 369 statewide, top 11%, 2,136 students, 30% FRL).
• Market conditions: Rents rising (+3.2%/yr); 342 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 1,341 units permitted in Tippecanoe County in 2024 (869 in 5+ unit buildings).
• Tippecanoe County population projected at +41% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 6.0% vs local median 3.0% in West Lafayette — 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.
• At $2,141/mo this rent would consume 48% of the median local household income ($53k/yr) (locally 5978% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.