322 Johnson St · Gary, IN 46402

$34,000

2 bd · 1.0 ba · 1,008 sqft · SingleFamily public records · 8 Days on market

Built 1928 Est $52k · 35% under

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Why this score? — see what drove the B+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• ARV discount +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Livability +3.7/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +1.4/10.0
• Schools +0.5/10.0

Listing remarks

Great location, nice block, close to metra downtown Gary, and tons of Redevelopment in the area. . Bring your contractors and offers. . cash, hard money or Rehab loans. .

Key facts

• Great location
• Close to metra
• Built 1928

Tags

• GREAT LOCATION
• CLOSE TO METRA
• REDEVELOPMENT IN THE AREA

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $34k.

Deal economics

• At list price, monthly cash flow is $759 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $34k).
• Cap rate 33.1% vs local median 9.1% in Gary — 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.

Location & tenants

• Location reads 73/100 on livability (#105 in IN) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: schools F, crime F, employment F.
• Gary Community School Corporation (urban): math 3% / reading 11% proficiency, ranked #299 of 301 in IN (top 99%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 80% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 46 active listings in the ZIP; 16 comparable units currently listed for rent nearby; rentals leasing fast (median 1d on market — plan ~1-2 weeks tenant-placement turnaround); lower-income renter base — watch delinquency; 1,642 units permitted in Lake County in 2024 (14 in 5+ unit buildings).
• This rent runs 44% of the median local income ($34k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $235 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Lake County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $10k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1928 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $34,000

Questions for the listing agent

1. Built in 1928 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
4. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
5. 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.
6. 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.
7. 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.

Investment metrics

• 1% rule: 3.59% ✓
• Cap rate: 33.09%
• Cash-on-cash: 95.72%
• DSCR: 5.26
• GRM: 2.3

CMA / ARV

• ARV (on-the-fly): $52,416
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
266 Johnson St	0.07mi	2/1.0	1,113 (+10%)	3mo	$37,000	$33	77
434 Pierce St	0.24mi	2/1.5	945 (-6%)	0mo	$34,000	$36	76
440 Johnson St	0.15mi	2/1.0	980 (-3%)	18mo	$28,000	$29	73
302 Lincoln St	0.07mi	3/1.0 (+1)	889 (-12%)	2mo	$33,900	$38	70
231 Cleveland St	0.30mi	3/1.0 (+1)	1,015 (+1%)	16mo	$60,000	$59	66
452 Pierce St	0.26mi	2/1.0	867 (-14%)	6mo	$45,000	$52	59
407 Mckinley St	0.36mi	3/1.5 (+1)	1,047 (+4%)	16mo	$115,140	$110	56
668 Harrison St	0.63mi	3/1.5 (+1)	1,008 (0%)	10mo	$40,000	$40	56
1009 W 2nd Ave	0.35mi	3/1.0 (+1)	892 (-12%)	8mo	$179,000	$201	53
1901 W 4th Pl	0.33mi	2/1.0	1,154 (+14%)	16mo	$60,000	$52	47
271 Van Buren St	0.54mi	3/2.0 (+1)	925 (-8%)	15mo	$108,000	$117	40
235 W Taft St	0.48mi	3/2.0 (+1)	1,158 (+15%)	8mo	$184,000	$159	37

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 96.6%
• Equity multiple: 5.50×
• Total profit: $42,854
• Equity at exit: $5,070

10-year hold

• IRR: 99.3%
• Equity multiple: 11.46×
• Total profit: $99,593
• Equity at exit: $2,940

Cash invested: $9,520 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 90 Strongly Landlord-Friendly
• State Indiana: 90 Strongly Landlord-Friendly · R+11
• County: — inherits STATE
• City: — inherits STATE

10-day pay-or-quit; landlord-favorable; preempted.

Methodology + full state rankings →

ZIP-level market 46402

• Home prices YoY: -2.8%
• Active inventory: 46
• Price-to-rent: 2.3×

Monthly cashflow live

• Estimated rent: $1,220 high
• Mortgage (P&I): −$178
• Tax from tax record: −$12 /mo · $147/yr
• Insurance: −$14
• HOA: −$0
• Vacancy / Maint / Mgmt: −$256
• Net cashflow: $759

Break-even live

Break-even rent $259

Max offer price $34,000

Occupancy floor 33%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $8,500
• Closing costs: $1,020
• Reserves months: —
• Total cash needed: —

Rent comps 16 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
317 Garfield St Gary, IN	3.0	1.0	936	$1,495	$1.60	43d	1	0.16mi
411 Pierce St Gary, IN	3.0	1.0	874	$1,395	$1.60	22d	1	0.24mi
358 Arthur St Unit 2 Gary, IN	1.0	1.0	800	$1,080	$1.35	43d	1	0.26mi
358 Arthur St Unit 2 Gary, IN	2.0	1.0	800	$1,250	$1.56	1d	1	0.26mi
2306 W 5th Ave Gary, IN	2.0–3.0	1.0	937	$1,199	$1.28	1d	2	0.54mi
2306 W 5th Ave Apt 3 Gary, IN	3.0	1.0	1025	$1,299	$1.27	1d	1	0.54mi
762 Harrison St Unit SRO Gary, IN	1.0	1.0	1075	$700	$0.65	1d	1	0.71mi
329 Marshall St Unit 1 Gary, IN	1.0	1.0	997	$900	$0.90	1d	1	0.74mi
501 Madison St Gary, IN	1.0–4.0	1.0	883	$1,144	$1.29	1d	11	0.77mi
672 Connecticut St Apt 1S Gary, IN	3.0	1.0	1247	$875	$0.70	15d	1	1.18mi
1521 Pierce St Unit 1 Gary, IN	2.0	1.0	800	$850	$1.06	1d	1	1.24mi
2939 W 10th Ave Gary, IN	2.0	1.0	744	$1,190	$1.60	1d	1	1.26mi
1572 Polk St Gary, IN	3.0	1.0	1500	$1,250	$0.83	1d	1	1.33mi
1595 Ellsworth St Gary, IN	2.0	1.0	868	$1,100	$1.27	2d	1	1.44mi
1595 Ellsworth St Unit 1 Gary, IN	2.0	1.0	868	$1,100	$1.27	1d	1	1.44mi
840 W 19th Ave Gary, IN	2.0	1.0	1035	$1,150	$1.11	19d	1	1.49mi

Listing history 6 events

1. 2026-06-16
   days on market $34,000 Active 8 DOM
2. 2026-06-15
   days on market $34,000 Active 7 DOM
3. 2026-06-13
   days on market $34,000 Active 5 DOM
4. 2026-06-13
   days on market $34,000 Active 4 DOM
5. 2026-06-08
   remarks 170-char remark
6. 2026-06-08
   listed $34,000 Active 1 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast IN · Partial reset (capped growth)

• Current annual tax: $147 · $12/mo
• Projected year-2 tax: $218 · $18/mo
• Expected delta: +$71/yr (+$6/mo · 48.6%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥102°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low 100% chance of damaging wind over 30 yrs
• 🫁 Air quality 4/10 Moderate 5 unhealthy d/yr today · 6 by 30 yrs out

Taxation est. · year 1

• Rental income: $14,644
• − Mortgage interest: −$1,905
• − Property taxes: −$147
• − Insurance: −$170
• − Repairs & maintenance: −$1,171
• − Management: −$1,171
• − Depreciation: −$989
• Taxable income: $9,090
• Est. tax owed @ 24.0%: −$2,182
• After-tax cash flow: $6,931/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Gary Community School Corporation
• NCES district ID: 1803870
• Math proficiency: 3% ▼ -10.00%
• Reading proficiency: 11% ▼ -6.00%
• Median HH income: $27,739
• Composite: 4.98/100
• National rank: #10039
• State rank: #299 of 301 in IN

Livability — Gary

• Score: 73/100
• State rank: #105
• US rank: #5592

Category grades

Amenities C+ Commute A+ Cost of living A+ Crime F Employment F Housing A+ Health & safety B- User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Gary, IN
• County: Lake County · 422,878 people
• City population: 63,701
• Metro: Chicago-Naperville-Elgin, IL-IN-WI
• Population (ZIP): 5,836
• Household income: $33,529
• Rent vs Own: 56.6% rent · 43.4% own
• Severe rent burden: 336.0

Population outlook (Lake County) Hauer SSP2

• Today (2025): 484,026 people
• By 2030: 478,091 · -1.2%
• By 2040: 462,974 · -4.3%
• By 2050: 449,894 · -7.1%
• By 2075: 436,169 · -9.9%
• By 2100: 426,607 · -11.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (87%)
• Race & ethnicity: Black 87% Two or more races 5% White 5% Hispanic / Latino 4%
• Common ancestry: Romanian 1% Ukrainian 1%
• Foreign-born: 1% · Canada
• Languages at home: 98% English-only · Spanish 1% Arabic 1%

Political lean MEDSL · Lake

• 2024 margin: Lean D (+5.6) · D 52.1% · R 46.5% · Other 1.5%
• 2008→2024 swing: -28.6pp toward R · 2008: 34.3pp · 2024: 5.6pp
• All cycles: 2024: D+5.6 2020: D+15.1 2016: D+20.6 2012: D+31.0 2008: D+34.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -7.21%
• Current HPI: 250.2464
• Rent YoY: —
• Metro: Chicago-Naperville-Elgin, IL-IN-WI
• State GDP YoY: ▲ 2.90%
• F500 in state: 18

Industry mix (Fortune 500 HQ in IN)

Industry	F500 HQs	Revenue
▸Industrial Machinery	2	$37B
▸Healthcare	1	$177B
▸Pharmaceuticals	1	$45B
▸Metals / Steel	1	$18B
▸Agriculture	1	$17B
▸Packaging	1	$12B

Price history

1 event — show timeline

• 2026-06-09 Listed $34,000 FSBO.com

Property tax history

-12.2%/yr

Latest (2024): $147 · -21.1% YoY. Source: county tax records.