215 Forrest Dr

Lawrenceburg, KY 40342

$175,000D+

3 bd · 1.5 ba · 1,424 sqft · Built 1963 · SingleFamily · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,437/mo
• Mortgage (P&I): −$918
• Tax + insurance: −$182
• HOA: −$0
• Vac / Maint / Mgmt: −$302
• Net cashflow: $36/mo
• Annual: $428/yr
• Cap rate: 6.54%
• Cash-on-cash: 0.87%
• DSCR: 1.04
• 1% rule: 0.82%
• Cash to close: $49,000

Investor read

• This is a 3-bed/1.5-bath single-family listed at $175k.
• At list price, monthly cash flow is $36 ($428/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 $144k (17.9% below list).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $144k (17.9% 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 64/100 on livability (#288 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-.
• Anderson County (town): math 32% / reading 41% proficiency, ranked #46 of 165 in KY (top 28%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Saffell Street Elementary School (math 31% / reading 30%, grade F, #384 of 676 statewide, top 57%, 402 students, 55% FRL); Anderson County Middle School (math 28% / reading 45%, grade F, #90 of 217 statewide, top 41%, 818 students, 46% FRL); Anderson County High School (math 37% / reading 42%, grade F, #40 of 254 statewide, top 19%, 1,189 students, 40% FRL).
• Market conditions: 227 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 72 units permitted in Anderson County in 2024 (0 in 5+ unit buildings).
• Current owner paid $112k; list at $175k implies a 56% gain — meaningful room to come down on a strong offer.
• Cap rate 6.5% vs local median 2.8% in Lawrenceburg — 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 1963 — 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 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?
• 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.