606 N Grant St

Edinburgh, IN 46124

$499,900F

4 bd · 2.0 ba · 2,016 sqft · Built 1997 · MultiFamily · Active · 80 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,505/mo
• Mortgage (P&I): −$2,622
• Tax + insurance: −$581
• HOA: −$0
• Vac / Maint / Mgmt: −$736
• Net cashflow: $-434/mo
• Annual: $-5,208/yr
• Cap rate: 5.25%
• Cash-on-cash: -3.72%
• DSCR: 0.83
• 1% rule: 0.70%
• Cash to close: $139,972

Investor read

• This is a 3 × 1-bed/?-bath units multifamily listed at $500k.
• At list price, monthly cash flow is $-434 ($-5k/yr) — negative. Per door: $-145/mo.
• To cash-flow at today's rent, offer at most $423k (15.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $350k (29.9% below list).
• It's been on market 80 days — a 6% lower offer ($470k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $350k (29.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#505 in IN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B+; Watch: employment D, amenities F, commute F.
• Edinburgh Community School Corporation (suburban): math 27% / reading 39% proficiency, ranked #214 of 301 in IN (top 71%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: East Side Elementary School (math 32% / reading 32%, grade F, #652 of 994 statewide, top 68%, 432 students, 75% FRL); Edinburgh Comm Middle School (math 17% / reading 42%, grade F, #212 of 330 statewide, top 67%, 173 students, 71% FRL); Edinburgh Community High School (math 24% / reading 64%, grade F, #169 of 369 statewide, top 51%, 232 students, 62% FRL).
• Market conditions: 37 active listings in the ZIP; 1,133 units permitted in Johnson County in 2024 (0 in 5+ unit buildings).
• Johnson County population projected at +26% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 5.3% vs local median 3.4% in Edinburgh — 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 80 days. Have you received any prior offers? Is the seller open to a 30% 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?
• 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?