5957 E Redwood Ct

Buffalo, IN 47960

$155,500D

3 bd · 1.0 ba · 1,584 sqft · Built 1970 · SingleFamily · Active · 76 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,420/mo
• Mortgage (P&I): −$815
• Tax + insurance: −$259
• HOA: −$0
• Vac / Maint / Mgmt: −$298
• Net cashflow: $47/mo
• Annual: $564/yr
• Cap rate: 6.66%
• Cash-on-cash: 1.29%
• DSCR: 1.06
• 1% rule: 0.91%
• Cash to close: $43,540

Investor read

• This is a 3-bed/1.0-bath single-family listed at $156k.
• At list price, monthly cash flow is $47 ($564/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $142k (8.7% below list).
• It's been on market 76 days — a 6% lower offer ($146k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $142k (8.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#232 in IN) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• North White School Corporation (rural): math 25% / reading 34% proficiency, ranked #245 of 301 in IN (top 81%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: North White Elementary School (math 29% / reading 28%, grade F, #727 of 994 statewide, top 73%, 433 students, 83% FRL); North White Middle School (math 17% / reading 32%, grade F, #251 of 330 statewide, top 77%, 201 students, 76% FRL); North White High School (math 34% / reading 64%, grade D, #123 of 369 statewide, top 36%, 266 students, 79% FRL) — zoned schools average 79% FRL vs 58% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 224 active listings in the ZIP; 47 units permitted in White County in 2024 (0 in 5+ unit buildings).
• White County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 5y 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.
• Current owner paid $81k; list at $156k implies a 92% gain — meaningful room to come down on a strong offer.
• Cap rate 6.7% vs local median 2.4% in Buffalo — 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 9% concession, seller financing, or rate buy-down credit?
• Built in 1970 — 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 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.