Belmont (Riverbend) Plan

Owensboro, KY 42303

$75,995F

3 bd · 2.0 ba · 1,193 sqft · Built — · Manufactured · Active · 266 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,144/mo
• Mortgage (P&I): −$524
• Tax + insurance: −$167
• HOA: −$400
• Vac / Maint / Mgmt: −$240
• Net cashflow: $-187/mo
• Annual: $-2,244/yr
• Cap rate: 4.05%
• Cash-on-cash: -8.02%
• DSCR: 0.64
• 1% rule: 1.14%
• Cash to close: $28,000

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $76k. Condition is rated good.
• At list price, monthly cash flow is $-187 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $73k (4.0% below list).
• Meets the 1% rule at list price ($1k rent vs $76k).
• It's been on market 266 days — a 12% lower offer ($67k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $67k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $691 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#148 in KY) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety B; Watch: employment D+, crime D-, amenities F.
• Daviess County (suburban): math 33% / reading 41% proficiency, ranked #43 of 165 in KY (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: East View Elementary School (math 25% / reading 30%, grade F, #431 of 676 statewide, top 64%, 462 students, 68% FRL); Daviess County Middle School (math 38% / reading 53%, grade D+, #32 of 217 statewide, top 15%, 813 students, 55% FRL); Daviess County High School (math 40% / reading 41%, grade F, #37 of 254 statewide, top 15%, 1,740 students, 42% FRL).
• Watch-outs: HOA is 35% of rent.
• Market conditions: 662 active listings in the ZIP; 226 units permitted in Daviess County in 2024 (6 in 5+ unit buildings).
• Daviess County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

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 266 days. Have you received any prior offers? Is the seller open to a 12% 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.
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.