202 Main St

Big Clifty, KY 42712

$98,000C

3 bd · 1.5 ba · 964 sqft · Built — · Other · Active · 41 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,000/mo
• Mortgage (P&I): −$514
• Tax + insurance: −$63
• HOA: −$0
• Vac / Maint / Mgmt: −$210
• Net cashflow: $214/mo
• Annual: $2,564/yr
• Cap rate: 8.91%
• Cash-on-cash: 9.35%
• DSCR: 1.42
• 1% rule: 1.02%
• Cash to close: $27,440

Investor read

• This is a 3-bed/1.5-bath other listed at $98k.
• At list price, monthly cash flow is $214 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $98k).
• It's been on market 41 days — a 3% lower offer ($95k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $95k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $678 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 46/100 on livability (#516 in KY) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A; Watch: amenities F, commute F, employment F.
• Grayson County (rural): math 27% / reading 40% proficiency, ranked #84 of 165 in KY (top 51%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Oran P Lawler Elementary School (math 37% / reading 47%, grade F, #178 of 676 statewide, top 29%, 413 students, 55% FRL); Grayson County Middle School (math 23% / reading 38%, grade F, #143 of 217 statewide, top 67%, 839 students, 63% FRL); Grayson County High School (math 24% / reading 38%, grade F, #118 of 254 statewide, top 47%, 1,252 students, 61% FRL) — zoned schools at 60% FRL track the district average.
• Market conditions: 12 active listings in the ZIP; 23 units permitted in Grayson County in 2024 (12 in 5+ unit buildings).
• Cap rate 8.9% vs local median 3.8% in Big Clifty — 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 41 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.