232 Stonegate Dr

Leitchfield, KY 42754

$174,900D

3 bd · 2.0 ba · 1,440 sqft · Built 2000 · SingleFamily · Active · 72 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,500/mo
• Mortgage (P&I): −$917
• Tax + insurance: −$292
• HOA: −$0
• Vac / Maint / Mgmt: −$315
• Net cashflow: $-23/mo
• Annual: $-281/yr
• Cap rate: 6.13%
• Cash-on-cash: -0.57%
• DSCR: 0.97
• 1% rule: 0.86%
• Cash to close: $48,972

Investor read

• This is a 3-bed/2.0-bath single-family listed at $175k. Condition is rated average.
• At list price, monthly cash flow is $-23 ($-281/yr) — negative.
• To cash-flow at today's rent, offer at most $172k (1.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $150k (14.2% below list).
• It's been on market 72 days — a 6% lower offer ($164k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $150k (14.2% 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 71/100 on livability (#144 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• Edmonson County (rural): math 31% / reading 43% proficiency, ranked #53 of 165 in KY (top 32%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Kyrock Elementary School (math 62% / reading 57%, grade B-, #35 of 676 statewide, top 6%, 299 students, 54% FRL); Edmonson County Middle School (math 33% / reading 41%, grade F, #80 of 217 statewide, top 41%, 280 students, 48% FRL); Edmonson County High School (math 22% / reading 42%, grade F, #97 of 254 statewide, top 46%, 592 students, 54% FRL) — zoned schools at 52% FRL track the district average.
• Market conditions: 186 active listings in the ZIP.
• Edmonson County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Cap rate 6.1% vs local median 3.8% in Leitchfield — 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

• 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?
• It's been on market 72 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
• 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.
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: Paint — Peeling paint on interior walls
• Major: Flooring — Worn hardwood floors
• Major: Exterior paint — Faded paint on exterior