959 Fentress Lookout Rd

Falls Of Rough, KY 40119

$119,500D

3 bd · 2.0 ba · 1,250 sqft · Built — · Other · Pending · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,044/mo
• Mortgage (P&I): −$627
• Tax + insurance: −$199
• HOA: −$0
• Vac / Maint / Mgmt: −$219
• Net cashflow: $-1/mo
• Annual: $-17/yr
• Cap rate: 6.28%
• Cash-on-cash: -0.05%
• DSCR: 1.00
• 1% rule: 0.87%
• Cash to close: $33,460

Investor read

• This is a 3-bed/2.0-bath other listed at $120k.
• At list price, monthly cash flow is $-1 ($-17/yr) — negative.
• To cash-flow at today's rent, offer at most $119k (0.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $104k (12.7% below list).
• It's been on market 18 days — a 2% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $104k (12.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-0.9%/yr); year-one equity from $826 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Grayson County (rural): math 27% / reading 40% proficiency, ranked #84 of 165 in KY (top 51%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Caneyville Elementary School (math 27% / reading 37%, grade F, #348 of 676 statewide, top 55%, 390 students, 71% FRL); Grayson County Middle School (math 23% / reading 38%, grade F, #143 of 217 statewide, top 67%, 839 students, 63% FRL); Grayson County High School (math 24% / reading 38%, grade F, #118 of 254 statewide, top 47%, 1,252 students, 61% FRL).
• Market conditions: 88 active listings in the ZIP; 23 units permitted in Grayson County in 2024 (12 in 5+ unit buildings).
• 2 sale attempts 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 $40k; list at $120k implies a 199% gain — meaningful room to come down on a strong offer.

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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.