147 Enchanted Dr

Burnside, KY 42503

$249,000D

3 bd · 1.5 ba · 1,464 sqft · Built 2000 · SingleFamily · Active · 52 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,750/mo
• Mortgage (P&I): −$1,306
• Tax + insurance: −$242
• HOA: −$0
• Vac / Maint / Mgmt: −$368
• Net cashflow: $-166/mo
• Annual: $-1,988/yr
• Cap rate: 5.49%
• Cash-on-cash: -2.85%
• DSCR: 0.87
• 1% rule: 0.70%
• Cash to close: $69,720

Investor read

• This is a 3-bed/1.5-bath single-family listed at $249k.
• At list price, monthly cash flow is $-166 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $220k (11.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $175k (29.7% below list).
• It's been on market 52 days — a 3% lower offer ($242k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $175k (29.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#141 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F.
• Pulaski County (town): math 43% / reading 53% proficiency, ranked #17 of 165 in KY (top 10%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Southern Middle School (math 41% / reading 50%, grade D+, #32 of 217 statewide, top 15%, 941 students, 68% FRL); Southwestern High School (math 33% / reading 43%, grade F, #55 of 254 statewide, top 22%, 1,265 students, 64% FRL).
• Market conditions: 294 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 117 units permitted in Pulaski County in 2024 (50 in 5+ unit buildings).
• 3 sale attempts since 12y ago; this cycle's ask has dropped $30k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $133k; list at $249k implies a 87% gain — meaningful room to come down on a strong offer.
• Cap rate 5.5% vs local median 3.0% in Burnside — 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 52 days. Have you received any prior offers? Is the seller open to a 30% 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 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.