114-116 E Mason Ave

Danville, KY 40422

$197,400C

4 bd · 2.0 ba · 1,782 sqft · Built 1960 · MultiFamily · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,267/mo
• Mortgage (P&I): −$1,035
• Tax + insurance: −$329
• HOA: −$0
• Vac / Maint / Mgmt: −$476
• Net cashflow: $427/mo
• Annual: $5,121/yr
• Cap rate: 8.89%
• Cash-on-cash: 9.26%
• DSCR: 1.41
• 1% rule: 1.15%
• Cash to close: $55,272

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $197k. Condition is rated good.
• At list price, monthly cash flow is $427 ($5k/yr) — positive. Per door: $213/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $197k).
• It's been on market 15 days — a 2% lower offer ($194k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $194k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#85 in KY, #3,148 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Danville Independent (town): math 26% / reading 35% proficiency, ranked #110 of 165 in KY (top 67%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mary G. Hogsett Primary School (367 students, 81% FRL); John W. Bate Middle School (math 19% / reading 37%, grade F, #165 of 217 statewide, top 77%, 399 students, 66% FRL); Danville High School (math 32% / reading 32%, grade F, #97 of 254 statewide, top 46%, 481 students, 63% FRL).
• Market conditions: 165 active listings in the ZIP; 85 units permitted in Boyle County in 2024 (0 in 5+ unit buildings).
• Boyle County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 8.9% vs local median 3.0% in Danville — 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.
• At $2,267/mo this rent would consume 46% of the median local household income ($60k/yr) (locally 1047% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.