690 Huff School Rd

McKee, KY 40447

$144,000C-

4 bd · 2.0 ba · 1,904 sqft · Built 2018 · SingleFamily · Pending · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,246/mo
• Mortgage (P&I): −$755
• Tax + insurance: −$90
• HOA: −$0
• Vac / Maint / Mgmt: −$262
• Net cashflow: $140/mo
• Annual: $1,676/yr
• Cap rate: 7.46%
• Cash-on-cash: 4.16%
• DSCR: 1.18
• 1% rule: 0.87%
• Cash to close: $40,320

Investor read

• This is a 4-bed/2.0-bath single-family listed at $144k.
• At list price, monthly cash flow is $140 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $125k (13.5% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $125k (13.5% below list) — sets the bar for 1% rule.
• In year one you build about $3k of equity ($996 loan paydown + $2k appreciation (1.7% local appreciation)).
• Location reads 62/100 on livability (#340 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Jackson County (rural): math 24% / reading 40% proficiency, ranked #101 of 165 in KY (top 61%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Jackson County Middle School (math 14% / reading 34%, grade F, #194 of 217 statewide, top 90%, 401 students, 70% FRL); Jackson County High School (math 22% / reading 37%, grade F, #127 of 254 statewide, top 58%, 546 students, 65% FRL) — zoned schools at 67% FRL track the district average.
• Market conditions: 77 active listings in the ZIP.
• Jackson County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (1.7% appreciation + 3.0% rent growth), your $40k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 10, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.5% vs local median 3.5% in McKee — 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.

Questions for listing agent

• 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.