119 Murrell Ave

Somerset, KY 42503

$71,100B-

3 bd · 1.0 ba · 1,352 sqft · Built 1970 · SingleFamily · Pending · 171 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,146/mo
• Mortgage (P&I): −$373
• Tax + insurance: −$49
• HOA: −$0
• Vac / Maint / Mgmt: −$241
• Net cashflow: $483/mo
• Annual: $5,801/yr
• Cap rate: 14.45%
• Cash-on-cash: 29.14%
• DSCR: 2.30
• 1% rule: 1.61%
• Cash to close: $19,908

Investor read

• This is a 3-bed/1.0-bath single-family listed at $71k.
• At list price, monthly cash flow is $483 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $71k).
• It's been on market 171 days — a 12% lower offer ($63k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $63k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $492 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#208 in KY) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety B+, crime B; Watch: amenities F, commute F, employment F.
• Somerset Independent (town): math 36% / reading 44% proficiency, ranked #42 of 165 in KY (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hopkins Elementary School (math 48% / reading 48%, grade D, #115 of 676 statewide, top 17%, 650 students, 71% FRL); Meece Middle School (math 31% / reading 44%, grade F, #73 of 217 statewide, top 36%, 444 students, 67% FRL); Somerset High School (math 32% / reading 32%, grade F, #97 of 254 statewide, top 46%, 521 students, 54% FRL).
• Market conditions: 293 active listings in the ZIP; 14 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 117 units permitted in Pulaski County in 2024 (50 in 5+ unit buildings).
• 2 sale attempts; this cycle's ask has dropped $104k (59%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $20k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 14.5% vs local median 3.1% in Somerset — 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

• It's been on market 171 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.