11686 E State Road 450

Shoals, IN 47581

$89,900D+

1 bd · 1.0 ba · 720 sqft · Built 1955 · SingleFamily · Active · 76 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $812/mo
• Mortgage (P&I): −$471
• Tax + insurance: −$216
• HOA: −$0
• Vac / Maint / Mgmt: −$171
• Net cashflow: $-46/mo
• Annual: $-552/yr
• Cap rate: 6.57%
• Cash-on-cash: 0.98%
• DSCR: 1.04
• 1% rule: 0.90%
• Cash to close: $25,172

Investor read

• This is a 1-bed/1.0-bath single-family listed at $90k. Condition is rated fair.
• At list price, monthly cash flow is $-46 ($-552/yr) — negative.
• To cash-flow at today's rent, offer at most $83k (7.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $81k (9.6% below list).
• It's been on market 76 days — a 6% lower offer ($85k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $81k (9.6% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($622 loan paydown + $4k appreciation (4.2% local appreciation)).
• Location reads 62/100 on livability (#484 in IN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime C-, health & safety C-, amenities F.
• Shoals Community School Corporation (rural): math 24% / reading 34% proficiency, ranked #248 of 301 in IN (top 82%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Shoals Community Elementary School (math 32% / reading 32%, grade F, #652 of 994 statewide, top 68%, 314 students, 52% FRL); Shoals Middle School (math 17% / reading 32%, grade F, #251 of 330 statewide, top 77%, 163 students, 62% FRL); Shoals Community High School (math 15% / reading 54%, grade F, #269 of 369 statewide, top 73%, 192 students, 54% FRL).
• Watch-outs: flood insurance adds $66/mo; built in 1955 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 19 active listings in the ZIP; 2 units permitted in Martin County in 2024 (0 in 5+ unit buildings).
• Martin County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (4.2% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk — 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 76 days. Have you received any prior offers? Is the seller open to a 10% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1955 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?

Repairs flagged (vision-AI assessment)

• Minor: Paint — Paint appears faded in some areas.
• Minor: Siding — Siding appears weathered, but no major damage.
• Minor: Landscaping — Basic landscaping with some overgrowth