832 Irma Rd

Salem, KY 42078

$86,000C+

3 bd · 2.0 ba · 1,080 sqft · Built 1998 · Other · Active · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $945/mo
• Mortgage (P&I): −$451
• Tax + insurance: −$70
• HOA: −$0
• Vac / Maint / Mgmt: −$198
• Net cashflow: $225/mo
• Annual: $2,698/yr
• Cap rate: 9.43%
• Cash-on-cash: 11.20%
• DSCR: 1.50
• 1% rule: 1.10%
• Cash to close: $24,080

Investor read

• This is a 3-bed/2.0-bath other listed at $86k.
• At list price, monthly cash flow is $225 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($945 rent vs $86k).
• It's been on market 18 days — a 2% lower offer ($85k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $85k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $595 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#396 in KY) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A; Watch: amenities F, commute F, employment D-.
• Livingston County (rural): math 27% / reading 39% proficiency, ranked #80 of 165 in KY (top 48%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: North Livingston Elementary School (math 17% / reading 37%, grade F, #434 of 676 statewide, top 69%, 130 students, 64% FRL); Livingston County Middle School (math 32% / reading 43%, grade F, #73 of 217 statewide, top 36%, 252 students, 60% FRL); Livingston Central High School (math 22% / reading 37%, grade F, #127 of 254 statewide, top 58%, 329 students, 47% FRL) — zoned schools at 57% FRL track the district average.
• Market conditions: 7 active listings in the ZIP.
• Livingston County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~10 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• 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.