1229 S 4th St

Louisville, KY 40203

$895,000D

14 bd · 12.0 ba · 9,537 sqft · Built 1910 · MultiFamily · Active · 92 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,558/mo
• Mortgage (P&I): −$4,693
• Tax + insurance: −$1,492
• HOA: −$0
• Vac / Maint / Mgmt: −$1,587
• Net cashflow: $-214/mo
• Annual: $-2,572/yr
• Cap rate: 6.01%
• Cash-on-cash: -1.03%
• DSCR: 0.95
• 1% rule: 0.84%
• Cash to close: $250,600

Investor read

• This is a 5 × 3-bed/?-bath units multifamily listed at $895k. Condition is rated good.
• At list price, monthly cash flow is $-214 ($-3k/yr) — negative. Per door: $-43/mo.
• To cash-flow at today's rent, offer at most $864k (3.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $756k (15.6% below list).
• It's been on market 92 days — a 9% lower offer ($814k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $756k (15.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $27k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#333 in KY) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, health & safety D+, crime F.
• Jefferson County (urban): math 19% / reading 35% proficiency, ranked #121 of 165 in KY (top 73%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Engelhard Elementary (math 8% / reading 12%, grade F, #648 of 676 statewide, top 98%, 276 students, 76% FRL); Meyzeek Middle (math 50% / reading 61%, grade B-, #7 of 217 statewide, top 3%, 930 students, 42% FRL); Jeffersontown High (math 17% / reading 17%, grade F, #222 of 254 statewide, top 89%, 943 students, 57% FRL) — zoned schools at 59% FRL track the district average.
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.7%/yr); 178 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 99d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; lower-income renter base — watch delinquency; 2,836 units permitted in Jefferson County in 2024 (1,558 in 5+ unit buildings).
• Jefferson County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.0% vs local median 4.9% in Louisville — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• At $1,512/mo per unit this rent would consume 59% of the median local household income ($31k/yr) — very limited rent-growth headroom before tenants either downsize or default.

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 92 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1910 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?

Repairs flagged (vision-AI assessment)

• Minor: kitchen cabinets — slight wear
• Minor: bathroom fixtures — dated design