3980 Madison St · Gary, IN 46408

$8,500

3 bd · 1.0 ba · 1,000 sqft · SingleFamily public records · 119 Days on market

Built 1917 4,704 sqft lot $8/sqft · 80% below area

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Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +15.0/30.0
• ARV discount +7.5/15.0
• 1% rule +5.0/10.0
• DSCR +5.0/10.0
• Livability +3.7/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +0.5/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

Investor Special - Massive Potential & Solid Bones This home is the ultimate blank canvas for your next project. If you are looking for a property with "good bones" that can be reimagined into a much larger residence, this is it. Key Features: Full Basement: providing massive potential to double your usable square footage or add extra bedrooms. Flexible Layout: The interior is ready to be reconfigured. With 1,000 sq. ft. to work with, you can easily open up the floor plan to create a more spacious, modern living area. This house needs a total renovation.

Key facts

• Flexible layout
• Full basement
• 4,704 sq ft lot

Tags

• FULL BASEMENT
• FLEXIBLE LAYOUT

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $8k.

Deal economics

• At list price, monthly cash flow is $1k ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $8k).
• Recommended offer: $8k (9.0% below list) — sets the bar for market timing.
• Cap rate 149.2% vs local median 9.1% in Gary — 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.

Location & tenants

• Location reads 73/100 on livability (#105 in IN) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: schools F, crime F, employment F.
• Gary Community School Corporation (urban): math 3% / reading 11% proficiency, ranked #299 of 301 in IN (top 99%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 80% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 102 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals leasing fast (median 7d on market — plan ~1-2 weeks tenant-placement turnaround); 1,642 units permitted in Lake County in 2024 (14 in 5+ unit buildings).
• This rent runs 35% of the median local income ($47k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $59 of loan paydown is wiped out by about $255 of value loss. Plan a longer hold.
• Lake County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $2k cash investment doubles in ~1 year — after that, you're playing with house money.

Negotiation context

• It's been on market 119 days — a 9% lower offer ($8k) is reasonable based on typical stale-listing flexibility.
• 7 sale attempts since 22y ago; this cycle's ask has dropped $4k (29%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: property tax is 3.0% of price; built in 1917 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $7,735 (9.0% below list)

Questions for the listing agent

1. It's been on market 119 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Built in 1917 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
7. 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?
8. 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?
9. 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.
10. 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.
11. 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.

Investment metrics

• 1% rule: 16.11% ✓
• Cap rate: 149.17%
• Cash-on-cash: 510.26%
• DSCR: 23.70
• GRM: 0.5

CMA / ARV

• ARV (median comp): $42,052
• List price: $8,500
• Delta: -79.79%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
3980 Tyler St	0.32mi	3/1.0	1,042 (+4%)	5mo	$128,000	$123	74
4088 Monroe St	0.15mi	2/2.0 (-1)	956 (-4%)	10mo	$139,000	$145	68
4115 Fillmore St	0.44mi	2/1.0 (-1)	950 (-5%)	6mo	$51,000	$54	61
4016 Connecticut St	0.38mi	2/1.0 (-1)	920 (-8%)	4mo	$25,000	$27	60
3737 Fillmore St	0.52mi	3/1.0	1,080 (+8%)	5mo	$175,500	$163	59
3540 Pennsylvania St	0.69mi	3/1.5	1,035 (+4%)	3mo	$68,000	$66	58
4181 Fillmore St	0.48mi	2/1.0 (-1)	1,080 (+8%)	3mo	$22,000	$20	57
3679 Buchanan St	0.66mi	3/1.0	918 (-8%)	0mo	$112,000	$122	55
3724 Tyler St	0.46mi	2/1.0 (-1)	870 (-13%)	4mo	$48,000	$55	48
4019 Pennsylvania St	0.47mi	2/— (-1)	856 (-14%)	4mo	$36,500	$43	46
4525 Tyler St	0.74mi	3/1.0	875 (-12%)	1mo	$136,000	$155	44
4217 Maryland St	0.67mi	2/1.0 (-1)	864 (-14%)	3mo	$49,900	$58	39

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: —
• Equity multiple: 27.52×
• Total profit: $63,106
• Equity at exit: $1,267

10-year hold

• IRR: —
• Equity multiple: 59.01×
• Total profit: $138,061
• Equity at exit: $735

Cash invested: $2,380 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 90 Strongly Landlord-Friendly
• State Indiana: 90 Strongly Landlord-Friendly · R+11
• County: — inherits STATE
• City: — inherits STATE

10-day pay-or-quit; landlord-favorable; preempted.

Methodology + full state rankings →

ZIP-level market 46408

• Home prices YoY: -31.6%
• Active inventory: 102
• Price-to-rent: 0.5×

Monthly cashflow live

• Estimated rent: $1,369 high
• Mortgage (P&I): −$45
• Tax from tax record: −$22 /mo · $258/yr
• Insurance: −$4
• HOA: −$0
• Vacancy / Maint / Mgmt: −$288
• Net cashflow: $1,012

Break-even live

Break-even rent $88

Max offer price $8,500

Occupancy floor 21%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $2,125
• Closing costs: $255
• Reserves months: —
• Total cash needed: —

Rent comps 22 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
4208 Jackson St Gary, IN	3.0	1.0	1411	$1,350	$0.96	44d	1	0.32mi
4018 Tyler St Gary, IN	3.0	1.0	880	$1,350	$1.53	1d	1	0.34mi
3708 Harrison St Gary, IN	3.0	1.5	904	$1,400	$1.55	2d	1	0.45mi
4040 Fillmore St Gary, IN	2.0	1.0	1000	$1,000	$1.00	10d	1	0.47mi
4170 Fillmore St Gary, IN	2.0	1.0	720	$950	$1.32	19d	1	0.52mi
624 W 44th Pl Gary, IN	3.0	1.0	836	$1,250	$1.50	7d	1	0.58mi
4430 Broadway Gary, IN	3.0	1.0	1200	$1,250	$1.04	1d	1	0.60mi
4456 Connecticut St Gary, IN	3.0	1.0	1044	$1,300	$1.25	3d	1	0.69mi
3777 Lincoln St Gary, IN	2.0	1.0	800	$1,150	$1.44	1d	1	0.69mi
3788 Lincoln St Gary, IN	3.0	2.0	1398	$1,400	$1.00	10d	1	0.71mi
4364 Buchanan St Gary, IN	3.0	1.0	900	$1,500	$1.67	1d	1	0.75mi
3395 Pennsylvania St Gary, IN	3.0	1.0	1300	$1,495	$1.15	1d	1	0.86mi
3449 Buchanan St Gary, IN	3.0	1.0	1301	$1,395	$1.07	43d	1	0.90mi
4009 Kentucky St Gary, IN	4.0	1.0	1307	$1,595	$1.22	43d	1	0.95mi
4748 Monroe St Gary, IN	3.0	1.0	1074	$1,695	$1.58	1d	1	0.96mi
816 E 35th Ct Gary, IN	2.0	1.0	810	$1,075	$1.33	1d	1	0.96mi
4416 Vermont Ct Gary, IN	3.0	1.0	1162	$1,350	$1.16	43d	1	1.05mi
4816 Massachusetts St Gary, IN	3.0	1.0	1024	$1,350	$1.32	15d	1	1.08mi
801 E 32nd Ave Unit 2 Gary, IN	2.0	1.0	850	$1,300	$1.53	1d	1	1.20mi
2410 W 45th Ave #2 Gary, IN	2.0	1.0	850	$950	$1.12	22d	1	1.46mi
2410 W 45th Ave Unit 1 Gary, IN	2.0	1.0	850	$895	$1.05	22d	1	1.46mi
5001 Carolina St Gary, IN	3.0	1.0	875	$1,350	$1.54	2d	1	1.46mi

Listing history 14 events

1. 2026-05-12
   status Pending 576-char remark

   Show marketing remark (576 chars)

   Investor Special - Massive Potential & Solid Bones This home is the ultimate blank canvas for your next project. If you are looking for a property with "good bones" that can be reimagined into a much larger residence, this is it. Key Features: Full Basement: providing massive potential to double your usable square footage or add extra bedrooms. Flexible Layout: The interior is ready to be reconfigured. With 1,000 sq. ft. to work with, you can easily open up the floor plan to create a more spacious, modern living area. This house needs a total renovation.

2. 2026-03-20
   price $8,500 576-char remark

   Show marketing remark (576 chars)

   Investor Special - Massive Potential & Solid Bones This home is the ultimate blank canvas for your next project. If you are looking for a property with "good bones" that can be reimagined into a much larger residence, this is it. Key Features: Full Basement: providing massive potential to double your usable square footage or add extra bedrooms. Flexible Layout: The interior is ready to be reconfigured. With 1,000 sq. ft. to work with, you can easily open up the floor plan to create a more spacious, modern living area. This house needs a total renovation.

3. 2026-02-19
   price $9,000 576-char remark

   Show marketing remark (576 chars)

   Investor Special - Massive Potential & Solid Bones This home is the ultimate blank canvas for your next project. If you are looking for a property with "good bones" that can be reimagined into a much larger residence, this is it. Key Features: Full Basement: providing massive potential to double your usable square footage or add extra bedrooms. Flexible Layout: The interior is ready to be reconfigured. With 1,000 sq. ft. to work with, you can easily open up the floor plan to create a more spacious, modern living area. This house needs a total renovation.

4. 2026-01-28
   price $10,000 576-char remark

   Show marketing remark (576 chars)

   Investor Special - Massive Potential & Solid Bones This home is the ultimate blank canvas for your next project. If you are looking for a property with "good bones" that can be reimagined into a much larger residence, this is it. Key Features: Full Basement: providing massive potential to double your usable square footage or add extra bedrooms. Flexible Layout: The interior is ready to be reconfigured. With 1,000 sq. ft. to work with, you can easily open up the floor plan to create a more spacious, modern living area. This house needs a total renovation.

5. 2026-01-12
   listed $12,000 Active 576-char remark

   Show marketing remark (576 chars)

   Investor Special - Massive Potential & Solid Bones This home is the ultimate blank canvas for your next project. If you are looking for a property with "good bones" that can be reimagined into a much larger residence, this is it. Key Features: Full Basement: providing massive potential to double your usable square footage or add extra bedrooms. Flexible Layout: The interior is ready to be reconfigured. With 1,000 sq. ft. to work with, you can easily open up the floor plan to create a more spacious, modern living area. This house needs a total renovation.

6. 2007-04-17
   historical
7. 2006-11-15
   listed $75,000
8. 2006-10-26
   historical
9. 2006-10-04
   listed $60,000
10. 2006-06-19
    listed $49,500
11. 2006-02-01
    listed $21,900
12. 2004-06-16
    listed $67,000
13. 2004-06-15
    historical
14. 2004-01-13
    listed $60,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast IN · Partial reset (capped growth)

• Current annual tax: $258 · $22/mo
• Projected year-2 tax: $258 · $22/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥102°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low 0% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $16,430
• − Mortgage interest: −$476
• − Property taxes: −$258
• − Insurance: −$42
• − Repairs & maintenance: −$1,314
• − Management: −$1,314
• − Depreciation: −$247
• Taxable income: $12,777
• Est. tax owed @ 24.0%: −$3,067
• After-tax cash flow: $9,078/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Gary Community School Corporation
• NCES district ID: 1803870
• Math proficiency: 3% ▼ -10.00%
• Reading proficiency: 11% ▼ -6.00%
• Median HH income: $27,739
• Composite: 4.98/100
• National rank: #10039
• State rank: #299 of 301 in IN

Livability — Gary

• Score: 73/100
• State rank: #105
• US rank: #5592

Category grades

Amenities C+ Commute A+ Cost of living A+ Crime F Employment F Housing A+ Health & safety B- User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Gary, IN
• County: Lake County · 422,878 people
• City population: 63,701
• Metro: Chicago-Naperville-Elgin, IL-IN-WI
• Population (ZIP): 15,747
• Household income: $47,453
• Rent vs Own: 41.2% rent · 58.8% own
• Severe rent burden: 619.0

Population outlook (Lake County) Hauer SSP2

• Today (2025): 484,026 people
• By 2030: 478,091 · -1.2%
• By 2040: 462,974 · -4.3%
• By 2050: 449,894 · -7.1%
• By 2075: 436,169 · -9.9%
• By 2100: 426,607 · -11.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.68)
• Race & ethnicity: Black 41% White 32% Hispanic / Latino 22% Two or more races 12%
• Hispanic origin (detail): Mexican 14% Puerto Rican 7%
• Common ancestry: Romanian 5% Iranian 1% Slovak 1%
• Foreign-born: 4% · Canada, China
• Languages at home: 87% English-only · Spanish 12% Chinese 1%

Political lean MEDSL · Lake

• 2024 margin: Lean D (+5.6) · D 52.1% · R 46.5% · Other 1.5%
• 2008→2024 swing: -28.6pp toward R · 2008: 34.3pp · 2024: 5.6pp
• All cycles: 2024: D+5.6 2020: D+15.1 2016: D+20.6 2012: D+31.0 2008: D+34.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -72.08%
• Current HPI: 155.6238
• Rent YoY: —
• Metro: Chicago-Naperville-Elgin, IL-IN-WI
• State GDP YoY: ▲ 2.90%
• F500 in state: 18

Industry mix (Fortune 500 HQ in IN)

Industry	F500 HQs	Revenue
▸Industrial Machinery	2	$37B
▸Healthcare	1	$177B
▸Pharmaceuticals	1	$45B
▸Metals / Steel	1	$18B
▸Agriculture	1	$17B
▸Packaging	1	$12B

Price history

-85.8% since first listed

14 events — show timeline

• 2026-05-12 Pending — NIRA MLS as Distributed by MLS Grid
• 2026-03-20 Price Changed $8,500 NIRA MLS as Distributed by MLS Grid
• 2026-02-19 Price Changed $9,000 NIRA MLS as Distributed by MLS Grid
• 2026-01-28 Price Changed $10,000 NIRA MLS as Distributed by MLS Grid
• 2026-01-12 Listed $12,000 NIRA MLS as Distributed by MLS Grid
• 2007-04-17 Listing Removed — NIRA MLS as Distributed by MLS Grid
• 2006-11-15 Listed $75,000 NIRA MLS as Distributed by MLS Grid
• 2006-10-26 Listing Removed — NIRA MLS as Distributed by MLS Grid
• 2006-10-04 Listed $60,000 NIRA MLS as Distributed by MLS Grid
• 2006-06-19 Listed $49,500 NIRA MLS as Distributed by MLS Grid
• 2006-02-01 Listed $21,900 NIRA MLS as Distributed by MLS Grid
• 2004-06-16 Listed $67,000 NIRA MLS as Distributed by MLS Grid
• 2004-06-15 Listing Removed — NIRA MLS as Distributed by MLS Grid
• 2004-01-13 Listed $60,000 NIRA MLS as Distributed by MLS Grid

Property tax history

-19.7%/yr

Latest (2024): $258 · +3.5% YoY. Source: county tax records.