130 W Navajo St

West Lafayette, IN 47906

$250,000D

3 bd · 1.5 ba · 1,523 sqft · Built 1978 · Condo · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,865/mo
• Mortgage (P&I): −$1,311
• Tax + insurance: −$215
• HOA: −$0
• Vac / Maint / Mgmt: −$392
• Net cashflow: $-53/mo
• Annual: $-636/yr
• Cap rate: 6.04%
• Cash-on-cash: -0.91%
• DSCR: 0.96
• 1% rule: 0.75%
• Cash to close: $70,000

Investor read

• This is a 3-bed/1.5-bath condo listed at $250k.
• At list price, monthly cash flow is $-53 ($-636/yr) — negative.
• To cash-flow at today's rent, offer at most $241k (3.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $186k (25.4% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $186k (25.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 90/100 on livability (#1 in IN, #74 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, commute A+; Watch: housing C-, employment D.
• West Lafayette Community School Corporation (urban): math 66% / reading 70% proficiency, ranked #9 of 301 in IN (top 3%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 11% free/reduced lunch — higher-income household profile.
• Zoned schools: West Lafayette Elementary School (math 77% / reading 72%, grade A, #17 of 994 statewide, top 2%, 740 students, 26% FRL); West Lafayette Intermediate School (math 66% / reading 64%, grade A-, #7 of 330 statewide, top 2%, 568 students, 24% FRL); West Lafayette Jr/Sr High School (math 64% / reading 76%, grade B+, #17 of 369 statewide, top 4%, 1,112 students, 19% FRL).
• Market conditions: Rents rising (+3.2%/yr); 342 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); 1,341 units permitted in Tippecanoe County in 2024 (869 in 5+ unit buildings).
• Tippecanoe County population projected at +41% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 6.0% vs local median 3.0% in West Lafayette — 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.
• This rent runs 42% of the median local income ($53k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.