338 Hodge St

Newport, KY 41071

$187,000B+

None bd · 2.0 ba · 3,315 sqft · Built 1884 · Other · Active · 110 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,860/mo
• Mortgage (P&I): −$981
• Tax + insurance: −$136
• HOA: −$0
• Vac / Maint / Mgmt: −$601
• Net cashflow: $1,143/mo
• Annual: $13,718/yr
• Cap rate: 13.63%
• Cash-on-cash: 26.20%
• DSCR: 2.17
• 1% rule: 1.53%
• Cash to close: $52,360

Investor read

• This is a ?-bed/2.0-bath other listed at $187k. Condition is rated poor.
• At list price, monthly cash flow is $1k ($14k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $187k).
• It's been on market 110 days — a 9% lower offer ($170k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $170k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#58 in KY, #1,070 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime F, employment D-.
• Newport Independent (suburban): math 14% / reading 26% proficiency, ranked #160 of 165 in KY (top 97%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 79% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Newport Intermediate School (math 12% / reading 22%, grade F, #607 of 676 statewide, top 91%, 387 students, 89% FRL); Newport High School (math 16% / reading 28%, grade F, #202 of 254 statewide, top 82%, 579 students, 84% FRL).
• Watch-outs: built in 1884 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.6%/yr); 239 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 247 units permitted in Campbell County in 2024 (77 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 4.6% rent growth), your $52k cash investment doubles in ~5 years — after that, you're playing with house money.
• Cap rate 13.6% vs local median 4.9% in Newport — 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.
• At $2,860/mo this rent would consume 57% of the median local household income ($60k/yr) (locally 1136% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 110 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1884 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Exterior siding — Peeling and damaged in several areas.
• Major: Roof — Appears to be in poor condition with visible damage.
• Major: Windows — Boarded up and appear to be in poor condition.
• Major: Foundation and structure — Signs of wear and potential structural issues.
• Major: Landscaping — Minimal and unkempt.
• Major: Exterior walls — Significant wear and tear.