8138 Timber Ln NE #407

New Salisbury, IN 47161

$231,900D

2 bd · 2.0 ba · 1,240 sqft · Built 2026 · SingleFamily · Active · 213 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,791/mo
• Mortgage (P&I): −$1,216
• Tax + insurance: −$386
• HOA: −$140
• Vac / Maint / Mgmt: −$376
• Net cashflow: $-327/mo
• Annual: $-3,929/yr
• Cap rate: 4.60%
• Cash-on-cash: -6.05%
• DSCR: 0.73
• 1% rule: 0.77%
• Cash to close: $64,932

Investor read

• This is a 2-bed/2.0-bath single-family listed at $232k. Condition is rated excellent.
• At list price, monthly cash flow is $-327 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $185k (20.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $179k (22.8% below list).
• It's been on market 213 days — a 12% lower offer ($204k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $179k (22.8% 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 56/100 on livability (#624 in IN) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: amenities F, commute F, employment F.
• North Harrison Community School Corporation (rural): math 40% / reading 46% proficiency, ranked #110 of 301 in IN (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Morgan Elementary School (math 67% / reading 52%, grade B-, #128 of 994 statewide, top 15%, 420 students, 54% FRL); North Harrison Middle School (math 30% / reading 39%, grade F, #167 of 330 statewide, top 52%, 467 students, 49% FRL); North Harrison High School (math 27% / reading 57%, grade F, #197 of 369 statewide, top 57%, 633 students, 44% FRL).
• Market conditions: 50 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 64d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 158 units permitted in Harrison County in 2024 (0 in 5+ unit buildings).
• Harrison County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

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 213 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.