2340 W Hibbs Rd

Cates, IN 47952

$69,500B+

3 bd · 1.5 ba · 1,248 sqft · Built 1977 · SingleFamily · Pending · 52 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,046/mo
• Mortgage (P&I): −$364
• Tax + insurance: −$157
• HOA: −$0
• Vac / Maint / Mgmt: −$220
• Net cashflow: $305/mo
• Annual: $3,658/yr
• Cap rate: 11.56%
• Cash-on-cash: 18.80%
• DSCR: 1.84
• 1% rule: 1.51%
• Cash to close: $19,460

Investor read

• This is a 3-bed/1.5-bath single-family listed at $70k.
• At list price, monthly cash flow is $305 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $70k).
• It's been on market 52 days — a 3% lower offer ($67k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $67k (3.0% below list) — sets the bar for market timing.
• In year one you build about $7k of equity ($481 loan paydown + $7k appreciation (10.0% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Covington Community School Corporation (town): math 49% / reading 55% proficiency, ranked #42 of 301 in IN (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Covington Elementary School (math 57% / reading 47%, grade C-, #237 of 994 statewide, top 26%, 414 students, 41% FRL); Covington Community High School (math 47% / reading 77%, grade B-, #41 of 369 statewide, top 12%, 284 students, 40% FRL).
• Market conditions: 19 active listings in the ZIP; 19 units permitted in Fountain County in 2024 (0 in 5+ unit buildings).
• Fountain County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 52 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1977 — 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.
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.