9325 W Hwy 60

Owensboro, KY 42301

$85,000B-

2 bd · 1.0 ba · 896 sqft · Built 1955 · SingleFamily · Active · 183 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,109/mo
• Mortgage (P&I): −$446
• Tax + insurance: −$568
• HOA: −$0
• Vac / Maint / Mgmt: −$233
• Net cashflow: $-138/mo
• Annual: $-1,653/yr
• Cap rate: 10.37%
• Cash-on-cash: 14.56%
• DSCR: 1.65
• 1% rule: 1.30%
• Cash to close: $23,800

Investor read

• This is a 2-bed/1.0-bath single-family listed at $85k. Condition is rated good.
• At list price, monthly cash flow is $-138 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $65k (23.4% below list).
• Meets the 1% rule at list price ($1k rent vs $85k).
• It's been on market 183 days — a 12% lower offer ($75k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $65k (23.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $588 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#148 in KY) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety B; Watch: employment D+, crime D-, amenities F.
• Daviess County (suburban): math 33% / reading 41% proficiency, ranked #43 of 165 in KY (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: West Louisville Elementary School (math 57% / reading 37%, grade D-, #119 of 676 statewide, top 19%, 331 students, 54% FRL); F T Burns Middle School (math 23% / reading 40%, grade F, #125 of 217 statewide, top 63%, 710 students, 67% FRL); Apollo High School (math 33% / reading 34%, grade F, #92 of 254 statewide, top 36%, 1,440 students, 55% FRL) — zoned schools average 59% FRL vs 42% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $427/mo; built in 1955 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 572 active listings in the ZIP; 226 units permitted in Daviess County in 2024 (6 in 5+ unit buildings).
• Daviess County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 3y ago; this cycle's ask has dropped $5k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $24k; list at $85k implies a 262% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 10.4% vs local median 3.8% in Owensboro — 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

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 183 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• Built in 1955 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is D 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Exposed plumbing — Exposed plumbing in kitchen and bath
• Major: Exposed electrical — Exposed electrical in kitchen and bath
• Major: Exposed framing — Exposed framing in kitchen and bath
• Major: Exposed subflooring — Exposed subflooring in kitchen and bath