218 N Main St

Topeka, IN 46571

$120,000D-

1 bd · 1.0 ba · 2,246 sqft · Built 1964 · SingleFamily · Pending · 46 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $849/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$327
• HOA: −$0
• Vac / Maint / Mgmt: −$178
• Net cashflow: $-285/mo
• Annual: $-3,423/yr
• Cap rate: 3.44%
• Cash-on-cash: -10.19%
• DSCR: 0.55
• 1% rule: 0.71%
• Cash to close: $33,600

Investor read

• This is a 1-bed/1.0-bath single-family listed at $120k.
• At list price, monthly cash flow is $-285 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $70k (42.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $85k (29.3% below list).
• It's been on market 46 days — a 3% lower offer ($116k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $70k (42.0% below list) — sets the bar for cash-flow.
• In year one you build about $7k of equity ($830 loan paydown + $6k appreciation (5.3% local appreciation)).
• Location reads 65/100 on livability (#329 in IN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, health & safety D-.
• Westview School Corporation (rural): math 58% / reading 53% proficiency, ranked #29 of 301 in IN (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Topeka Elementary School (math 52% / reading 42%, grade D-, #325 of 994 statewide, top 36%, 267 students, 40% FRL); Westview Jr-Sr High School (math 54% / reading 52%, grade C-, #99 of 369 statewide, top 27%, 743 students, 29% FRL).
• Watch-outs: property tax is 2.8% of price.
• Market conditions: 7 active listings in the ZIP; 134 units permitted in LaGrange County in 2024 (0 in 5+ unit buildings).
• 3 sale attempts since 7y ago; this cycle's ask is 11900% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $90k; 33% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 5, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 46 days. Have you received any prior offers? Is the seller open to a 42% concession, seller financing, or rate buy-down credit?
• Built in 1964 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?
• 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.