1223 Hermes Ave · Covington, KY 41011

$55,000

2 bd · 1.0 ba · 1,852 sqft · SingleFamily public records · 1 Days on market

6,506 sqft lot

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Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +15.7/30.0
• ARV discount +7.5/15.0
• DSCR +4.8/10.0
• Livability +4.3/5.0
• 1% rule +3.2/10.0
• Rent growth +2.9/5.0
• Condition / age +2.5/5.0
• Schools +1.5/10.0
• Appreciation +0.0/10.0

Listing remarks

Online Auction hosted by One Bid Auctions! Investor opportunity in Covington, KY. This 1,800+ SF brick building is ready for renovation and offers strong value-add potential. The sale includes the adjacent 3,450± SF lot at 1227 Hermes Ave. Rear alley access from Hermes Ave provides off-street parking. Seller is also offering 1222 & 1234 Pike St. , creating an opportunity to acquire multiple contiguous properties. Located in an area benefiting from ongoing investment and redevelopment, this property offers strong upside potential just minutes from Downtown Covington and Cincinnati. Auction ends July 1, 2026 at 6PM. 10 percent buyers premium added to final hammer price. Bidder mus

Key facts

• Rear alley access
• Brick building
• Off-street parking

Tags

• BRICK BUILDING
• REAR ALLEY ACCESS
• OFF-STREET PARKING
• MINUTES FROM CINCINNATI

Property features AI

Exterior

• Parking: Off-street parking; On-street parking
• Utilities: Public water; Public sewer; Water available
• Home design: Single family residence; Two levels; Residential property
• Exterior features: Shingle roof; Lot measures approximately 50 x 137 (0.15 acre)

Interior

• Bathrooms: 1 full bathroom
• Interior features: Existing structure

🔨 Auction listing. The $55,000 list price is a nominal opening bid, not a real ask — every metric below is computed on the estimated value $288,912 (ARV from comps), not the list price.

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $55k.

Deal economics

• At list price, monthly cash flow is $126 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $55k).
• Cap rate 6.8% vs local median 5.3% in Covington — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

Location & tenants

• Location reads 86/100 on livability (#40 in KY, #376 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: employment D+.
• Covington Independent (suburban): math 10% / reading 27% proficiency, ranked #162 of 165 in KY (top 98%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 78% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: John G Carlisle Elementary (math 2% / reading 27%, grade F, #620 of 676 statewide, top 93%, 304 students, 81% FRL); Holmes Middle School (math 8% / reading 26%, grade F, #211 of 217 statewide, top 97%, 656 students, 84% FRL); Holmes High School (math 12% / reading 17%, grade F, #227 of 254 statewide, top 89%, 878 students, 80% FRL) — zoned schools at 82% FRL track the district average.
• Market conditions: Rents rising (+1.6%/yr); 214 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals leasing fast (median 5d on market — plan ~1-2 weeks tenant-placement turnaround); 699 units permitted in Kenton County in 2024 (287 in 5+ unit buildings).
• This rent runs 40% of the median local income ($70k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Kenton County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

Negotiation context

• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Current owner paid $4k; list at $55k implies a 1275% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• 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.

Recommended offer $55,000

Questions for the listing agent

1. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
2. 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?
3. 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.
4. 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.
5. 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.

Investment metrics

• 1% rule: 0.82% ✗
• Cap rate: 6.82%
• Cash-on-cash: 1.87%
• DSCR: 1.08
• GRM: 10.2

CMA / ARV

• ARV (on-the-fly): $288,912
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1507 Morton Ave	0.32mi	3/1.5 (+1)	1,856 (+0%)	4mo	$201,700	$109	74
916 Montague Rd	0.24mi	2/1.5	1,740 (-6%)	4mo	$202,500	$116	73
1103 Mount Allen Rd	0.43mi	3/2.0 (+1)	1,800 (-3%)	1mo	$300,000	$167	66
346 W 9th St	0.48mi	2/2.5	1,765 (-5%)	4mo	$310,000	$176	61
1712 Banklick St	0.67mi	2/2.0	1,936 (+4%)	1mo	$230,900	$119	56
812 Main St	0.53mi	3/2.0 (+1)	1,980 (+7%)	1mo	$241,000	$122	54
222 Berry St	0.52mi	2/1.0	1,620 (-12%)	2mo	$385,000	$238	53
252 Pershing Ave	0.71mi	2/1.0	1,710 (-8%)	2mo	$157,500	$92	52
1083 Montague Rd	0.72mi	3/2.0 (+1)	1,720 (-7%)	1mo	$680,000	$395	44
1718 Woodburn Ave	0.62mi	3/2.5 (+1)	1,680 (-9%)	3mo	$244,000	$145	42
302 W 7th St	0.68mi	3/2.0 (+1)	2,052 (+11%)	6mo	$320,000	$156	36
262 W 7th St	0.68mi	3/2.0 (+1)	2,052 (+11%)	6mo	$320,000	$156	36

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 1.55% rent growth · sell at horizon

5-year hold

• IRR: -14.8%
• Equity multiple: 0.48×
• Total profit: $-42,285
• Equity at exit: $43,078

10-year hold

• IRR: -8.5%
• Equity multiple: 0.50×
• Total profit: $-40,488
• Equity at exit: $24,980

Cash invested: $80,895 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State Kentucky: 83 Strongly Landlord-Friendly · R+16
• County: — inherits STATE
• City: — inherits STATE

7-day pay-or-quit (URLTA cities); generally landlord-friendly.

Methodology + full state rankings →

ZIP-level market 41011

• Rents YoY: 1.6%
• Active inventory: 214
• Price-to-rent: 1.9×

Monthly cashflow live

• Estimated rent: $2,361 high
• Mortgage (P&I): −$1,515
• Tax from tax record: −$103 /mo · $1,239/yr
• Insurance: −$120
• HOA: −$0
• Vacancy / Maint / Mgmt: −$496
• Net cashflow: $126

Break-even live

Break-even rent $2,201

Max offer price $288,912

Occupancy floor 90%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $72,228
• Closing costs: $8,667
• Reserves months: —
• Total cash needed: —

Rent comps 6 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1205 Lee St Unit 3 Covington, KY	3.0	2.5	1850	$3,000	$1.62	24d	1	0.39mi
1927 Scott St Apt 1 Covington, KY	3.0	2.0	1865	$2,100	$1.13	20d	1	1.04mi
103 E 3rd St Covington, KY	2.0	2.5	1291	$3,250	$2.52	2d	1	1.20mi
50 W Rivercenter Blvd Covington, KY	1.0–2.0	1.0–2.5	1273	$3,640	$2.86	2d	9	1.21mi
2030 Mackoy St Covington, KY	3.0	1.5	1598	$1,779	$1.11	4d	1	1.21mi
22 Swain Ct Covington, KY	1.0–3.0	1.0–2.0	951	$1,895	$1.99	2d	3	1.33mi

Listing history 2 events

1. 2026-06-18
   remarks 688-char remark
2. 2026-06-18
   listed $55,000 Active 1 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast KY · Resets to sale price

• Current annual tax: $1,239 · $103/mo
• Projected year-2 tax: $1,239 · $103/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 5/10 Major 7 d/yr ≥103°F today · 19 d/yr by 30 yrs out
• 💨 Wind 2/10 Low 100% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $28,330
• − Mortgage interest: −$16,184
• − Property taxes: −$1,239
• − Insurance: −$1,445
• − Repairs & maintenance: −$2,266
• − Management: −$2,266
• − Depreciation: −$8,405
• Taxable loss: −$3,474
• Est. tax savings @ 24.0%: +$834
• After-tax cash flow: $2,350/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Covington Independent
• NCES district ID: 2101350
• Math proficiency: 10% ▼ -20.00%
• Reading proficiency: 27% ▼ -14.00%
• Median HH income: $33,681
• Composite: 15.04/100
• National rank: #9353
• State rank: #162 of 165 in KY

Livability — Covington

• Score: 86/100
• State rank: #40
• US rank: #376

Category grades

Amenities A+ Commute A+ Cost of living A+ Crime C+ Employment D+ Housing A+ Health & safety B+ User ratings B

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Covington, KY
• County: Kenton County · 142,881 people
• City population: 34,373
• Metro: Cincinnati, OH-KY-IN
• Population (ZIP): 26,981
• Household income: $69,970
• Rent vs Own: 53.9% rent · 46.1% own
• Severe rent burden: 1488.0

Population outlook (Kenton County) Hauer SSP2

• Today (2025): 174,205 people
• By 2030: 177,897 · +2.1%
• By 2040: 182,671 · +4.9%
• By 2050: 183,543 · +5.4%
• By 2075: 178,977 · +2.7%
• By 2100: 159,920 · -8.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (72%)
• Race & ethnicity: White 72% Hispanic / Latino 12% Black 10% Two or more races 7% Asian 1%
• Hispanic origin (detail): Mexican 2%
• Common ancestry: Lithuanian 2% Italian 1% Slovak 1%
• Foreign-born: 7% · Canada
• Languages at home: 90% English-only · Spanish 6% Other Indo-European 1%

Political lean MEDSL · Kenton

• 2024 margin: Strong R (+21.7) · D 38.2% · R 59.9% · Other 1.9%
• 2008→2024 swing: -0.9pp no change · 2008: -20.9pp · 2024: -21.7pp
• All cycles: 2024: R+21.7 2020: R+19.3 2016: R+26.1 2012: R+24.3 2008: R+20.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -215.20%
• Current HPI: 237.0869
• Rent YoY: ▲ 1.55%
• Metro: Cincinnati, OH-KY-IN
• State GDP YoY: ▲ 1.81%
• F500 in state: 4

Industry mix (Fortune 500 HQ in KY)

Industry	F500 HQs	Revenue
▸Healthcare	1	$118B
▸Food / Beverage	1	$7B

Price history

+155.8% since first listed

3 events — show timeline

• 2026-06-17 Listed $55,000 NKMLS
• 1989-10-27 Sold (Public Records) $4,000 Public Records
• 1989-05-23 Sold (Public Records) $21,500 Public Records

Property tax history

+3.5%/yr

Latest (2025): $1,239 · +0.7% YoY. Source: county tax records.