6728 Straight Hollow Rd

Phelps, KY 41555

$95,000D+

1 bd · 1.0 ba · 1,174 sqft · Built 1985 · SingleFamily · Active · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $958/mo
• Mortgage (P&I): −$498
• Tax + insurance: −$326
• HOA: −$0
• Vac / Maint / Mgmt: −$201
• Net cashflow: $-68/mo
• Annual: $-814/yr
• Cap rate: 6.14%
• Cash-on-cash: -0.56%
• DSCR: 0.98
• 1% rule: 1.01%
• Cash to close: $26,600

Investor read

• This is a 1-bed/1.0-bath single-family listed at $95k.
• At list price, monthly cash flow is $-68 ($-814/yr) — negative.
• To cash-flow at today's rent, offer at most $83k (12.6% below list).
• Meets the 1% rule at list price ($958 rent vs $95k).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $83k (12.6% below list) — sets the bar for cash-flow.
• In year one you build about $3k of equity ($657 loan paydown + $3k appreciation (2.8% local appreciation)).
• Location reads 50/100 on livability (#504 in KY) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: amenities F, commute F, employment F.
• Pike County (rural): math 24% / reading 40% proficiency, ranked #98 of 165 in KY (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Pike County Day Treatment (math 24% / reading 24%, 14 students, 100% FRL) — zoned schools average 100% FRL vs 54% district-wide (46 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 2.9% of price; flood insurance adds $56/mo.
• Market conditions: 4 active listings in the ZIP; 4 units permitted in Pike County in 2024 (0 in 5+ unit buildings).
• Pike County population projected at -33% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (2.8% appreciation + 3.0% rent growth), your $27k cash investment doubles in ~8 years — after that, you're playing with house money.
• By year 10, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.

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?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• 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.