3092 Cane Ridge Rd

North Middletown, KY 40361

$135,000C

3 bd · 1.0 ba · 1,135 sqft · Built — · Other · Active · 31 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,472/mo
• Mortgage (P&I): −$708
• Tax + insurance: −$157
• HOA: −$0
• Vac / Maint / Mgmt: −$309
• Net cashflow: $298/mo
• Annual: $3,580/yr
• Cap rate: 9.54%
• Cash-on-cash: 11.58%
• DSCR: 1.52
• 1% rule: 1.09%
• Cash to close: $37,800

Investor read

• This is a 3-bed/1.0-bath other listed at $135k.
• At list price, monthly cash flow is $298 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $135k).
• It's been on market 31 days — a 3% lower offer ($131k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $131k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $933 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#409 in KY) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Bourbon County (town): math 26% / reading 32% proficiency, ranked #108 of 165 in KY (top 66%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Bourbon Central Elementary School (math 32% / reading 27%, grade F, #393 of 676 statewide, top 63%, 483 students, 70% FRL); Bourbon County Middle School (math 25% / reading 38%, grade F, #125 of 217 statewide, top 63%, 593 students, 63% FRL); Bourbon County High School (math 27% / reading 32%, grade F, #127 of 254 statewide, top 58%, 790 students, 53% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 126 active listings in the ZIP; 90 units permitted in Bourbon County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts since 4y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $18k; list at $135k implies a 630% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 31 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• 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.