593 Waterworks Rd

Fort Thomas, KY 41075

$169,900C

2 bd · 1.0 ba · 1,255 sqft · Built 1920 · SingleFamily · Active · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,672/mo
• Mortgage (P&I): −$891
• Tax + insurance: −$130
• HOA: −$0
• Vac / Maint / Mgmt: −$351
• Net cashflow: $300/mo
• Annual: $3,600/yr
• Cap rate: 8.41%
• Cash-on-cash: 7.57%
• DSCR: 1.34
• 1% rule: 0.98%
• Cash to close: $47,572

Investor read

• This is a 2-bed/1.0-bath single-family listed at $170k.
• At list price, monthly cash flow is $300 ($4k/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 $167k (1.6% below list).
• It's been on market 25 days — a 2% lower offer ($167k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $167k (1.6% 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 93/100 on livability (#7 in KY, #22 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+.
• Fort Thomas Independent (suburban): math 60% / reading 64% proficiency, ranked #2 of 165 in KY (top 1%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Johnson Elementary School (math 67% / reading 67%, grade B+, #13 of 676 statewide, top 2%, 425 students, 6% FRL); Highlands Middle School (math 53% / reading 64%, grade B, #4 of 217 statewide, top 2%, 732 students, 11% FRL); Highlands High School (math 62% / reading 57%, grade C+, #4 of 254 statewide, top 1%, 1,015 students, 9% FRL) — zoned schools at 9% FRL track the district average.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+6.5%/yr); 97 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 247 units permitted in Campbell County in 2024 (77 in 5+ unit buildings).
• 3 sale attempts since 11y 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.
• At projected returns (-3.0% appreciation + 6.5% rent growth), your $48k cash investment doubles in ~9 years — after that, you're playing with house money.
• Cap rate 8.4% vs local median 3.4% in Fort Thomas — 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

• Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.