123 Cawood Ln

Middlesborough, KY 40965

$93,500B+

2 bd · 1.0 ba · 1,426 sqft · Built 1918 · SingleFamily · Active · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,125/mo
• Mortgage (P&I): −$490
• Tax + insurance: −$112
• HOA: −$0
• Vac / Maint / Mgmt: −$236
• Net cashflow: $286/mo
• Annual: $3,437/yr
• Cap rate: 9.97%
• Cash-on-cash: 13.13%
• DSCR: 1.58
• 1% rule: 1.20%
• Cash to close: $26,180

Investor read

• This is a 2-bed/1.0-bath single-family listed at $94k.
• At list price, monthly cash flow is $286 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $94k).
• It's been on market 40 days — a 3% lower offer ($91k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $91k (3.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($646 loan paydown + $3k appreciation (3.6% local appreciation)).
• Location reads 56/100 on livability (#456 in KY) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A-; Watch: amenities F, commute F, employment F.
• Middlesboro Independent (town): math 14% / reading 34% proficiency, ranked #153 of 165 in KY (top 93%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Middlesboro Elementary School (math 12% / reading 27%, grade F, #572 of 676 statewide, top 88%, 453 students, 83% FRL); Middlesboro Middle School (math 17% / reading 41%, grade F, #156 of 217 statewide, top 74%, 281 students, 82% FRL); Middlesboro High School (math 12% / reading 22%, grade F, #222 of 254 statewide, top 89%, 352 students, 73% FRL) — zoned schools average 79% FRL vs 63% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1918 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 72 active listings in the ZIP; 44 units permitted in Bell County in 2024 (0 in 5+ unit buildings).
• Bell County population projected at -30% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 8y ago; this cycle's ask has dropped $32k (25%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $72k; 30% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (3.6% appreciation + 3.0% rent growth), your $26k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 40 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1918 — 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?
• 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.