7226 S 625 W

Shadeland, IN 47992

$349,900D

4 bd · 3.0 ba · 2,800 sqft · Built 1976 · SingleFamily · Active · 39 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,464/mo
• Mortgage (P&I): −$1,835
• Tax + insurance: −$284
• HOA: −$0
• Vac / Maint / Mgmt: −$307
• Net cashflow: $-962/mo
• Annual: $-11,547/yr
• Cap rate: 2.99%
• Cash-on-cash: -11.79%
• DSCR: 0.48
• 1% rule: 0.42%
• Cash to close: $97,972

Investor read

• This is a 4-bed/3.0-bath single-family listed at $350k.
• At list price, monthly cash flow is $-962 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $180k (48.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $146k (58.2% below list).
• It's been on market 39 days — a 3% lower offer ($339k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $146k (58.2% below list) — sets the bar for 1% rule.
• In year one you build about $37k of equity ($2k loan paydown + $35k appreciation (10.0% local appreciation)).
• Location reads 67/100 on livability (#259 in IN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Tippecanoe School Corporation (rural): math 44% / reading 49% proficiency, ranked #80 of 301 in IN (top 27%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mintonye Elementary School (math 44% / reading 41%, grade F, #425 of 994 statewide, top 44%, 469 students, 28% FRL); Southwestern Middle School (math 27% / reading 30%, grade F, #224 of 330 statewide, top 68%, 496 students, 40% FRL); Mccutcheon High School (math 36% / reading 64%, grade D+, #120 of 369 statewide, top 33%, 1,825 students, 44% FRL).
• Market conditions: 7 active listings in the ZIP; 1,341 units permitted in Tippecanoe County in 2024 (869 in 5+ unit buildings).
• Tippecanoe County population projected at +41% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 3y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $282k; 24% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$60k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.0% vs local median 2.1% in Shadeland — 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 39 days. Have you received any prior offers? Is the seller open to a 58% concession, seller financing, or rate buy-down credit?
• Built in 1976 — 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 F-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.