Palmetto Plan

Westfield, IN 46069

$408,995F

4 bd · 2.5 ba · 2,580 sqft · Built — · SingleFamily · Active · 956 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,189/mo
• Mortgage (P&I): −$2,523
• Tax + insurance: −$802
• HOA: −$0
• Vac / Maint / Mgmt: −$670
• Net cashflow: $-805/mo
• Annual: $-9,664/yr
• Cap rate: 4.28%
• Cash-on-cash: -7.17%
• DSCR: 0.68
• 1% rule: 0.66%
• Cash to close: $134,703

Investor read

• This is a 4-bed/2.5-bath single-family listed at $409k.
• At list price, monthly cash flow is $-805 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $365k (10.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $319k (22.0% below list).
• It's been on market 956 days — a 12% lower offer ($360k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $319k (22.0% 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 $14k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#140 in IN) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Westfield-Washington Schools (suburban): math 58% / reading 64% proficiency, ranked #10 of 301 in IN (top 3%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Monon Trail Elementary School (math 55% / reading 43%, grade D, #301 of 994 statewide, top 30%, 572 students, 29% FRL); Westfield Middle School (math 46% / reading 62%, grade B-, #31 of 330 statewide, top 9%, 1,429 students, 18% FRL); Westfield High School (math 61% / reading 85%, grade B+, #8 of 369 statewide, top 2%, 2,665 students, 18% FRL).
• Market conditions: 120 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 4,661 units permitted in Hamilton County in 2024 (1,528 in 5+ unit buildings).
• Hamilton County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: moderate flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.3% vs local median 3.0% in Westfield — 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 956 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
• 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.