813 S 4th St

Danville, KY 40422

$175,000F

3 bd · 1.0 ba · 1,896 sqft · Built — · Other · Active · 312 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,388/mo
• Mortgage (P&I): −$918
• Tax + insurance: −$110
• HOA: −$0
• Vac / Maint / Mgmt: −$292
• Net cashflow: $69/mo
• Annual: $829/yr
• Cap rate: 6.77%
• Cash-on-cash: 1.69%
• DSCR: 1.08
• 1% rule: 0.79%
• Cash to close: $49,000

Investor read

• This is a 3-bed/1.0-bath other listed at $175k.
• At list price, monthly cash flow is $69 ($829/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $139k (20.7% below list).
• It's been on market 312 days — a 12% lower offer ($154k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $139k (20.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#85 in KY, #3,148 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Danville Independent (town): math 26% / reading 35% proficiency, ranked #110 of 165 in KY (top 67%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: John W. Bate Middle School (math 19% / reading 37%, grade F, #165 of 217 statewide, top 77%, 399 students, 66% FRL); Danville High School (math 32% / reading 32%, grade F, #97 of 254 statewide, top 46%, 481 students, 63% FRL).
• Market conditions: 166 active listings in the ZIP; 85 units permitted in Boyle County in 2024 (0 in 5+ unit buildings).
• Boyle County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts; this cycle's ask has dropped $75k (30%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $99k; list at $175k implies a 77% gain — meaningful room to come down on a strong offer.
• Cap rate 6.8% vs local median 2.8% in Danville — 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

• It's been on market 312 days. Have you received any prior offers? Is the seller open to a 21% 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.
• 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.
• 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.