219 Gale Dr

Lancaster, KY 40444

$155,000B-

3 bd · 1.0 ba · 1,040 sqft · Built 1964 · Other · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,828/mo
• Mortgage (P&I): −$813
• Tax + insurance: −$116
• HOA: −$0
• Vac / Maint / Mgmt: −$384
• Net cashflow: $516/mo
• Annual: $6,191/yr
• Cap rate: 10.29%
• Cash-on-cash: 14.27%
• DSCR: 1.63
• 1% rule: 1.18%
• Cash to close: $43,400

Investor read

• This is a 3-bed/1.0-bath other listed at $155k.
• At list price, monthly cash flow is $516 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $155k).
• It's been on market 20 days — a 2% lower offer ($153k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $153k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#314 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A-; Watch: health & safety D+, amenities F, commute F.
• Garrard County (rural): math 28% / reading 42% proficiency, ranked #63 of 165 in KY (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lancaster Elementary School (math 37% / reading 37%, grade F, #255 of 676 statewide, top 42%, 469 students, 80% FRL); Garrard Middle School (math 21% / reading 42%, grade F, #125 of 217 statewide, top 63%, 563 students, 64% FRL); Garrard County High School (math 27% / reading 37%, grade F, #97 of 254 statewide, top 46%, 801 students, 59% FRL) — zoned schools average 68% FRL vs 50% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 170 active listings in the ZIP.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $43k cash investment doubles in ~9 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1964 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.