2205 Old Salem Rd · London, KY 40741

$99,900

2 bd · 1.0 ba · 1,080 sqft · SingleFamily public records · 90 Days on market

Built 1974 1.35 ac lot $92/sqft · 36% below area

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Why this score? — see what drove the C 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 +22.7/30.0
• ARV discount +7.5/15.0
• DSCR +7.3/10.0
• 1% rule +4.8/10.0
• Schools +4.4/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

This 3 bedroom, 2 bath home offers a great opportunity for investors or buyers looking to add their personal touch. Situated on 1.35 acres (per PVA), the property provides a peaceful, spacious setting with plenty of room to expand, garden, or enjoy the outdoors. The home itself is in need of repairs and updates, making it ideal for a renovation project or fixer-upper investment. Inside, you'll find a functional layout with generous living space ready for improvement. Outside, the property truly shines with a large barn perfect for storage, livestock, or workshop use. Along with an additional shed for tools and equipment. The acreage offers privacy and flexibility, whether you're looking for a small homestead, hobby farm, or simply extra space to spread out. With its combination of land, outbuildings, and potential, this property is a rare find for those ready to bring new life to a home with character and possibilities. Will require cash or a conventional loan to purchase.

Key facts

• Garden
• Functional layout
• 1.35 acres

Tags

• 1.35 ACRES
• LARGE BARN
• ADDITIONAL SHED
• GARDEN
• FUNCTIONAL LAYOUT
• GENEROUS LIVING SPACE

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $100k.

Deal economics

• At list price, monthly cash flow is $173 ($2k/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 $98k (2.2% below list).
• Recommended offer: $94k (6.0% below list) — sets the bar for market timing.
• Cap rate 8.4% vs local median 2.2% in London — 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 68/100 on livability (#202 in KY) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety B+; Watch: schools D+, employment D+, amenities F.
• Laurel County (town): math 51% / reading 56% proficiency, ranked #8 of 165 in KY (top 5%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 246 active listings in the ZIP; 16 units permitted in Laurel County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $691 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.

Negotiation context

• It's been on market 90 days — a 6% lower offer ($94k) is reasonable based on typical stale-listing flexibility.
• Current owner paid $45k; list at $100k implies a 122% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Climate carrying-cost: severe wildfire risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $93,906 (6.0% below list)

Questions for the listing agent

1. It's been on market 90 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1974 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
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: 0.98% ✗
• Cap rate: 8.37%
• Cash-on-cash: 7.41%
• DSCR: 1.33
• GRM: 8.5

CMA / ARV

• ARV (median comp): $200,120
• List price: $99,900
• Delta: -50.08%
• Verdict: UNDERPRICED
• Comps: 5 within 1.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: -5.0%
• Equity multiple: 0.81×
• Total profit: $-5,229
• Equity at exit: $14,895

10-year hold

• IRR: 4.6%
• Equity multiple: 1.34×
• Total profit: $9,445
• Equity at exit: $8,638

Cash invested: $27,972 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State Kentucky: 83 Strongly Landlord-Friendly · R+16
• County: — inherits STATE
• City: — inherits STATE

7-day pay-or-quit (URLTA cities); generally landlord-friendly.

Methodology + full state rankings →

ZIP-level market 40741

• Home prices YoY: -9.0%
• Active inventory: 246
• Price-to-rent: 8.5×

Monthly cashflow live

• Estimated rent: $977 medium
• Mortgage (P&I): −$524
• Tax from tax record: −$34 /mo · $405/yr
• Insurance: −$42
• HOA: −$0
• Vacancy / Maint / Mgmt: −$205
• Net cashflow: $173

Break-even live

Break-even rent $759

Max offer price $99,900

Occupancy floor 77%

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: $24,975
• Closing costs: $2,997
• Reserves months: —
• Total cash needed: —

Listing history 17 events

1. 2026-06-18
   days on market $99,900 Active 90 DOM
2. 2026-06-17
   days on market $99,900 Active 89 DOM
3. 2026-06-16
   days on market $99,900 Active 88 DOM
4. 2026-06-15
   days on market $99,900 Active 87 DOM
5. 2026-06-13
   days on market $99,900 Active 85 DOM
6. 2026-06-12
   days on market $99,900 Active 84 DOM
7. 2026-06-09
   days on market $99,900 Active 81 DOM
8. 2026-06-08
   days on market $99,900 Active 80 DOM
9. 2026-06-07
   days on market $99,900 Active 79 DOM
10. 2026-06-07
    days on market $99,900 Active 78 DOM
11. 2026-06-04
    days on market $99,900 Active 75 DOM
12. 2026-06-02
    days on market $99,900 Active 74 DOM
13. 2026-06-01
    days on market $99,900 Active 73 DOM
14. 2026-05-31
    days on market $99,900 Active 72 DOM
15. 2026-05-31
    days on market $99,900 Active 71 DOM
16. 2026-03-20
    listed $99,900 Active 987-char remark

    Show marketing remark (987 chars)

    This 3 bedroom, 2 bath home offers a great opportunity for investors or buyers looking to add their personal touch. Situated on 1.35 acres (per PVA), the property provides a peaceful, spacious setting with plenty of room to expand, garden, or enjoy the outdoors. The home itself is in need of repairs and updates, making it ideal for a renovation project or fixer-upper investment. Inside, you'll find a functional layout with generous living space ready for improvement. Outside, the property truly shines with a large barn perfect for storage, livestock, or workshop use. Along with an additional shed for tools and equipment. The acreage offers privacy and flexibility, whether you're looking for a small homestead, hobby farm, or simply extra space to spread out. With its combination of land, outbuildings, and potential, this property is a rare find for those ready to bring new life to a home with character and possibilities. Will require cash or a conventional loan to purchase.

17. 1991-06-01
    soldstatus $45,000

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

Tax reassessment forecast KY · Resets to sale price

• Current annual tax: $405 · $34/mo
• Projected year-2 tax: $859 · $72/mo
• Expected delta: +$455/yr (+$38/mo · 112.4%)

ⓘ 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 8/10 Severe
• 🌡 Heat 3/10 Moderate 7 d/yr ≥99°F today · 20 d/yr by 30 yrs out
• 💨 Wind 2/10 Low 4% chance of damaging wind over 30 yrs
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $11,726
• − Mortgage interest: −$5,596
• − Property taxes: −$405
• − Insurance: −$500
• − Repairs & maintenance: −$938
• − Management: −$938
• − Depreciation: −$2,906
• Taxable income: $443
• Est. tax owed @ 24.0%: −$106
• After-tax cash flow: $1,966/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: Laurel County
• NCES district ID: 2103210
• Math proficiency: 51% ▼ -9.00%
• Reading proficiency: 56% ▼ -11.00%
• Median HH income: $36,577
• Composite: 44.39/100
• National rank: #2814
• State rank: #8 of 165 in KY

Livability — London

• Score: 68/100
• State rank: #202
• US rank: #10028

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Population (ZIP): 23,303

Population outlook (Laurel County) Hauer SSP2

• Today (2025): 62,602 people
• By 2030: 63,310 · +1.1%
• By 2040: 63,706 · +1.8%
• By 2050: 62,705 · +0.2%
• By 2075: 58,574 · -6.4%
• By 2100: 50,888 · -18.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (96%)
• Race & ethnicity: White 96% Two or more races 2% Hispanic / Latino 2%
• Common ancestry: Italian 1% Slovak 1% Serbian 1%
• Foreign-born: 1% · Canada
• Languages at home: 98% English-only · Spanish 1%

Political lean MEDSL · Laurel

• 2024 margin: Solid R (+69.9) · D 14.5% · R 84.3% · Other 1.2%
• 2008→2024 swing: -11.9pp toward R · 2008: -58.0pp · 2024: -69.9pp
• All cycles: 2024: R+69.9 2020: R+66.7 2016: R+69.1 2012: R+63.6 2008: R+58.0

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -24.45%
• Current HPI: 247.1396
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 1.81%
• F500 in state: 4

Industry mix (Fortune 500 HQ in KY)

Industry	F500 HQs	Revenue
▸Healthcare	1	$118B
▸Food / Beverage	1	$7B

Price history

+122.0% since first listed

2 events — show timeline

• 2026-03-20 Listed $99,900 ImagineMLS
• 1991-06-01 Sold (Public Records) $45,000 Public Records

Property tax history

-0.2%/yr

Latest (2025): $405 · +0.9% YoY. Source: county tax records.