327 Latta Rd

Water Valley, KY 42041

$155,000D

3 bd · 1.0 ba · 1,395 sqft · Built 1960 · SingleFamily · Active · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,171/mo
• Mortgage (P&I): −$813
• Tax + insurance: −$136
• HOA: −$0
• Vac / Maint / Mgmt: −$246
• Net cashflow: $-23/mo
• Annual: $-282/yr
• Cap rate: 6.11%
• Cash-on-cash: -0.65%
• DSCR: 0.97
• 1% rule: 0.76%
• Cash to close: $43,400

Investor read

• This is a 3-bed/1.0-bath single-family listed at $155k.
• At list price, monthly cash flow is $-23 ($-282/yr) — negative.
• To cash-flow at today's rent, offer at most $151k (2.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $117k (24.4% below list).
• It's been on market 38 days — a 3% lower offer ($150k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $117k (24.4% below list) — sets the bar for 1% rule.
• In year one you build about $1k of equity ($1k loan paydown + $274 appreciation (0.2% local appreciation)).
• Location reads 64/100 on livability (#309 in KY) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: amenities F, commute F, health & safety F.
• Hickman County (rural): math 41% / reading 49% proficiency, ranked #24 of 165 in KY (top 14%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hickman County Elementary School (math 42% / reading 47%, grade F, #148 of 676 statewide, top 24%, 421 students, 58% FRL); Hickman County High School (math 37% / reading 47%, grade F, #32 of 254 statewide, top 13%, 302 students, 57% FRL).
• Market conditions: 45 active listings in the ZIP.
• Hickman County population projected at -29% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 10y 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 $25k; list at $155k implies a 520% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 38 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1960 — 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.
• 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?
• 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.