3905 Tennessee St · Gary, IN 46409

$59,888

3 bd · 1.5 ba · 1,295 sqft · SingleFamily public records · 43 Days on market

Built 1955 6,360 sqft lot $46/sqft · 18% below area Est $73k · 18% under ↓ 30% since listing

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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
• Rent growth +3.7/5.0
• Livability +3.7/5.0
• Appreciation +3.0/10.0
• Condition / age +2.5/5.0
• Schools +0.5/10.0

Listing remarks

Attention investors, rehabbers, and valueadd buyers -- this 3bed, 1.5bath ranch on a corner lot offers over 1,200 sq ft of living space and multiple exit strategies. The home features a large living room, separate dining room, kitchen, and an additional family room that provides layout flexibility for a modern redesign. A 2car detached garage, front/side/backyard space, and a functional floor plan make this property an excellent candidate for a fixandflip, rental portfolio addition, or BRRRR strategy. The property needs repairs, including a roof and interior updates, but the structure and layout provide a strong foundation for renovation. A tenant is currently in place on a monthtomonth ag

Key facts

• Separate dining room
• Large living room
• Cozy family room

Tags

• CORNER LOT LOCATION
• LARGE LIVING ROOM
• SEPARATE DINING ROOM
• COZY FAMILY ROOM
• DETACHED GARAGE
• FRONT SIDE AND BACKYARD

Property features AI

Finance

• Other: Occupied by tenant
• Financial info: No investor or rental income details provided
• HOA & community: No HOA information listed

Exterior

• Parking: Detached garage; 2 garage spaces
• Security: No security features listed
• Utilities: Public water; Public sewer
• Home design: One-story property; Built in 1955; Property listed in fixer condition
• Construction: Year built 1955
• Exterior features: Rear porch; Chain link fencing; Neighborhood view

Interior

• Kitchen: Gas cooktop; Refrigerator
• Bedrooms: Primary bedroom; Bedroom 2; Bedroom 3
• Flooring: Flooring details not provided
• Bathrooms: 1 full bathroom; 1 half bathroom
• Heating & cooling: Forced air heating; Ceiling fan(s) for cooling
• Interior features: No additional interior features listed
• Laundry & utility: No laundry or utility details listed

What this means for you Summary

Snapshot

• This is a 3-bed/1.5-bath single-family listed at $60k.

Deal economics

• At list price, monthly cash flow is $789 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $60k).
• Recommended offer: $58k (3.0% below list) — sets the bar for market timing.
• Cap rate 22.1% 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: Rents rising fast (+4.8%/yr); 75 active listings in the ZIP; 18 comparable units currently listed for rent nearby; rentals leasing fast (median 11d 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 41% of the median local income ($45k/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 $414 of loan paydown is wiped out by about $2k 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 + 4.8% rent growth), your $17k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 43 days — a 3% lower offer ($58k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1955 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $58,091 (3.0% below list)

Questions for the listing agent

1. It's been on market 43 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Built in 1955 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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?
6. 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.
7. 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.
8. 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: 2.56% ✓
• Cap rate: 22.11%
• Cash-on-cash: 56.48%
• DSCR: 3.51
• GRM: 3.3

CMA / ARV

• ARV (median comp): $72,670
• List price: $59,888
• Delta: -17.59%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1436 E 39th Ave	0.16mi	3/1.5	1,392 (+8%)	6mo	$121,000	$87	75
3788 Swift St	0.31mi	3/2.0	1,236 (-5%)	9mo	$238,000	$193	68
3537 Virginia St	0.60mi	3/1.0	1,252 (-3%)	7mo	$85,000	$68	58
3786 Alabama St	0.38mi	3/1.0	1,428 (+10%)	7mo	$185,000	$130	58
1221 E 41st Ave	0.34mi	3/2.0	1,466 (+13%)	11mo	$205,000	$140	51
3832 Missouri St	0.48mi	3/2.0	1,408 (+9%)	13mo	$199,900	$142	51
3636 Carolina St	0.49mi	4/2.0 (+1)	1,400 (+8%)	9mo	$187,000	$134	50
3618 Georgia St	0.46mi	4/2.0 (+1)	1,426 (+10%)	8mo	$20,000	$14	48
4234 Ohio St	0.41mi	3/1.0	1,488 (+15%)	12mo	$60,000	$40	44
3608 Virginia St	0.55mi	2/1.0 (-1)	1,115 (-14%)	1mo	$36,500	$33	43
3671 Connecticut St	0.71mi	4/2.0 (+1)	1,350 (+4%)	13mo	$25,000	$19	42
3886 Massachusetts St	0.72mi	2/3.0 (-1)	1,155 (-11%)	13mo	$15,000	$13	26

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 · 4.85% rent growth · sell at horizon

5-year hold

• IRR: 57.0%
• Equity multiple: 3.59×
• Total profit: $43,498
• Equity at exit: $8,929

10-year hold

• IRR: 62.6%
• Equity multiple: 7.86×
• Total profit: $115,111
• Equity at exit: $5,178

Cash invested: $16,769 (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 46409

• Home prices YoY: -2.0%
• Rents YoY: 4.8%
• Active inventory: 75
• Price-to-rent: 3.3×

Monthly cashflow live

• Estimated rent: $1,534 high
• Mortgage (P&I): −$314
• Tax from tax record: −$84 /mo · $1,003/yr
• Insurance: −$25
• HOA: −$0
• Vacancy / Maint / Mgmt: −$322
• Net cashflow: $789

Break-even live

Break-even rent $535

Max offer price $59,888

Occupancy floor 44%

Sensitivity live

Price	-10% $823	-5% $806	+0% $789	+5% $772	+10% $755
Rent	-10% $668	-5% $729	+0% $789	+5% $850	+10% $910
Rate	-1.0pp $819	-0.5pp $804	base $789	+0.5pp $774	+1.0pp $758

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: $14,972
• Closing costs: $1,797
• Reserves months: —
• Total cash needed: —

Rent comps 18 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
4009 Kentucky St Gary, IN	4.0	1.0	1307	$1,595	$1.22	44d	1	0.12mi
4416 Vermont Ct Gary, IN	3.0	1.0	1162	$1,350	$1.16	44d	1	0.63mi
3820 Colbourne St Hobart, IN	3.0	2.0	1209	$1,695	$1.40	44d	1	0.75mi
3852 Sandusky St Hobart, IN	4.0	1.0	1209	$1,800	$1.49	17d	1	0.81mi
3395 Pennsylvania St Gary, IN	3.0	1.0	1300	$1,495	$1.15	1d	1	0.88mi
4456 Connecticut St Gary, IN	3.0	1.0	1044	$1,300	$1.25	3d	1	0.91mi
4430 Broadway Gary, IN	3.0	1.0	1200	$1,250	$1.04	1d	1	0.98mi
4208 Jackson St Gary, IN	3.0	1.0	1411	$1,350	$0.96	45d	1	1.19mi
4905 Kentucky St Unit 4901 Gary, IN	3.0	1.0	950	$1,525	$1.61	24d	1	1.24mi
3612 Van Buren St Gary, IN	3.0	1.0	1534	$1,600	$1.04	1d	1	1.27mi
3708 Harrison St Gary, IN	3.0	1.5	904	$1,400	$1.55	2d	1	1.30mi
4816 Massachusetts St Gary, IN	3.0	1.0	1024	$1,350	$1.32	15d	1	1.31mi
4974 Tennessee St Gary, IN	2.0	1.0	1100	$1,175	$1.07	19d	1	1.31mi
4018 Tyler St Gary, IN	3.0	1.0	880	$1,350	$1.53	1d	1	1.33mi
5026 Kentucky St Gary, IN	3.0	1.0	1200	$1,100	$0.92	6d	1	1.38mi
5001 Carolina St Gary, IN	3.0	1.0	875	$1,350	$1.54	2d	1	1.38mi
4040 Fillmore St Gary, IN	2.0	1.0	1000	$1,000	$1.00	10d	1	1.46mi
4748 Monroe St Gary, IN	3.0	1.0	1074	$1,695	$1.58	1d	1	1.48mi

Listing history 17 events

1. 2026-06-18
   days on market $59,888 Active 43 DOM
2. 2026-06-17
   days on market $59,888 Active 42 DOM
3. 2026-06-16
   days on market $59,888 Active 41 DOM
4. 2026-06-15
   days on market $59,888 Active 40 DOM
5. 2026-06-13
   days on market $59,888 Active 38 DOM
6. 2026-06-13
   pricedays on market $59,888 Active 37 DOM
7. 2026-06-09
   days on market $63,000 Active 34 DOM
8. 2026-06-08
   days on market $63,000 Active 33 DOM
9. 2026-06-07
   days on market $63,000 Active 32 DOM
10. 2026-06-04
    days on market $63,000 Active 29 DOM
11. 2026-06-03
    days on market $63,000 Active 28 DOM
12. 2026-06-02
    days on market $63,000 Active 27 DOM
13. 2026-06-01
    days on market $63,000 Active 26 DOM
14. 2026-05-31
    days on market $63,000 Active 25 DOM
15. 2026-05-13
    price $73,133 717-char remark
16. 2026-05-09
    price $78,133 717-char remark
17. 2026-05-06
    listed $85,333 Active 717-char remark

ⓘ 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: $1,003 · $84/mo
• Projected year-2 tax: $1,003 · $84/mo
• Expected delta: $0/yr ($0/mo · -0.0%)

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

Climate risk First Street

• 🌊 Flood 4/10 Moderate FEMA zone X (unshaded) · 22% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥102°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $18,408
• − Mortgage interest: −$3,355
• − Property taxes: −$1,003
• − Insurance: −$299
• − Repairs & maintenance: −$1,473
• − Management: −$1,473
• − Depreciation: −$1,742
• Taxable income: $9,063
• Est. tax owed @ 24.0%: −$2,175
• After-tax cash flow: $7,296/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): 7,184
• Household income: $44,667
• Rent vs Own: 55.5% rent · 44.5% own
• Severe rent burden: 516.0

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 (68%)
• Race & ethnicity: Black 68% Two or more races 17% Hispanic / Latino 14% White 11%
• Hispanic origin (detail): Mexican 8% Puerto Rican 5%
• Common ancestry: Iranian 1% Romanian 1%
• Foreign-born: 2% · Canada
• Languages at home: 94% English-only · Spanish 6%

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: ▼ -3.91%
• Current HPI: 190.6724
• Rent YoY: ▲ 4.85%
• 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

-29.8% since first listed

6 events — show timeline

• 2026-06-12 Price Changed $59,888 NIRA MLS as Distributed by MLS Grid
• 2026-05-27 Price Changed $63,000 NIRA MLS as Distributed by MLS Grid
• 2026-05-22 Price Changed $67,333 NIRA MLS as Distributed by MLS Grid
• 2026-05-13 Price Changed $73,133 NIRA MLS as Distributed by MLS Grid
• 2026-05-09 Price Changed $78,133 NIRA MLS as Distributed by MLS Grid
• 2026-05-06 Listed $85,333 NIRA MLS as Distributed by MLS Grid

Property tax history

-9.4%/yr

Latest (2024): $1,003 · +16.3% YoY. Source: county tax records.