4751 Pleasant Valley Dr

Montmorenci, IN 47906

$4,500,000B-

75 bd · 2.0 ba · 2,256 sqft · Built 1938 · MultiFamily · Active · 144 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $55,036/mo
• Mortgage (P&I): −$23,598
• Tax + insurance: −$4,088
• HOA: −$0
• Vac / Maint / Mgmt: −$11,558
• Net cashflow: $15,792/mo
• Annual: $189,509/yr
• Cap rate: 10.50%
• Cash-on-cash: 15.04%
• DSCR: 1.67
• 1% rule: 1.22%
• Cash to close: $1,260,000

Investor read

• This is a 75-bed/2.0-bath multifamily listed at $4.50M.
• At list price, monthly cash flow is $16k ($190k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($55k rent vs $4.50M).
• It's been on market 144 days — a 12% lower offer ($3.96M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.96M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $31k of loan paydown is wiped out by about $135k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#513 in IN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A, employment A-; Watch: amenities F, commute F, health & safety F.
• Tippecanoe School Corporation (rural): math 44% / reading 49% proficiency, ranked #80 of 301 in IN (top 27%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Klondike Elementary School (math 46% / reading 44%, grade D-, #374 of 994 statewide, top 38%, 981 students, 39% FRL); Klondike Middle School (math 45% / reading 57%, grade C, #40 of 330 statewide, top 12%, 465 students, 36% FRL); William Henry Harrison High School (math 53% / reading 73%, grade B-, #39 of 369 statewide, top 11%, 2,136 students, 30% FRL).
• Watch-outs: built in 1938 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.2%/yr); 342 active listings in the ZIP; 1,341 units permitted in Tippecanoe County in 2024 (869 in 5+ unit buildings).
• Tippecanoe County population projected at +41% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 3y 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 + 3.2% rent growth), your $1.26M cash investment doubles in ~8 years — after that, you're playing with house money.
• At $55,036/mo this rent would consume 1244% of the median local household income ($53k/yr) (locally 5978% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 144 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1938 — 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 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.