1207 Elm St

Benton, KY 42025

$48,000B+

2 bd · 1.0 ba · 1,112 sqft · Built 1960 · SingleFamily · Active · 76 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,266/mo
• Mortgage (P&I): −$252
• Tax + insurance: −$53
• HOA: −$0
• Vac / Maint / Mgmt: −$266
• Net cashflow: $696/mo
• Annual: $8,349/yr
• Cap rate: 23.69%
• Cash-on-cash: 62.12%
• DSCR: 3.76
• 1% rule: 2.64%
• Cash to close: $13,440

Investor read

• This is a 2-bed/1.0-bath single-family listed at $48k. Condition is rated fair.
• At list price, monthly cash flow is $696 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $48k).
• It's been on market 76 days — a 6% lower offer ($45k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $45k (6.0% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($332 loan paydown + $5k appreciation (10.0% local appreciation)).
• Location reads 69/100 on livability (#171 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Marshall County (rural): math 29% / reading 38% proficiency, ranked #73 of 165 in KY (top 44%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Benton Elementary School (math 36% / reading 41%, grade F, #234 of 676 statewide, top 36%, 527 students, 51% FRL); Marshall County High School (math 26% / reading 30%, grade F, #151 of 254 statewide, top 61%, 1,256 students, 43% FRL) — zoned schools at 47% FRL track the district average.
• Market conditions: 315 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 0d on market — plan ~1-2 weeks tenant-placement turnaround); 121 units permitted in Marshall County in 2024 (5 in 5+ unit buildings).
• Marshall County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 3y ago 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.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~1 year — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 23.7% vs local median 3.8% in Benton — 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

• It's been on market 76 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: kitchen countertops — severely worn and damaged
• Major: bathroom flooring — severely damaged and unsafe
• Moderate: exterior siding — weathered and peeling
• Major: landscaping — overgrown and unkempt