4667 US Highway 431 S

Beechmont, KY 42324

$124,000C-

3 bd · 2.0 ba · 1,344 sqft · Built 1994 · Other · Active · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,155/mo
• Mortgage (P&I): −$650
• Tax + insurance: −$176
• HOA: −$0
• Vac / Maint / Mgmt: −$242
• Net cashflow: $85/mo
• Annual: $1,026/yr
• Cap rate: 7.76%
• Cash-on-cash: 5.25%
• DSCR: 1.23
• 1% rule: 0.93%
• Cash to close: $34,720

Investor read

• This is a 3-bed/2.0-bath other listed at $124k.
• At list price, monthly cash flow is $85 ($1k/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 $115k (6.9% below list).
• It's been on market 17 days — a 2% lower offer ($122k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $115k (6.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-0.9%/yr); year-one equity from $857 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#320 in KY) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A-; Watch: amenities F, commute F, employment F.
• Muhlenberg County (rural): math 24% / reading 37% proficiency, ranked #104 of 165 in KY (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Muhlenberg South Elementary (math 15% / reading 33%, grade F, #512 of 676 statewide, top 76%, 564 students, 65% FRL); Muhlenberg South Middle School (math 34% / reading 40%, grade F, #80 of 217 statewide, top 41%, 420 students, 60% FRL); Muhlenberg County High School (math 24% / reading 32%, grade F, #151 of 254 statewide, top 61%, 1,146 students, 53% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 8 active listings in the ZIP; 5 units permitted in Muhlenberg County in 2024 (0 in 5+ unit buildings).
• Muhlenberg County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $5k; list at $124k implies a 2380% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major flood risk; moderate wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• 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 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.
• 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.