1331 House Rd

Annville, KY 40741

$70,000B-

3 bd · 2.0 ba · 1,456 sqft · Built 2003 · Other · Pending · 43 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,026/mo
• Mortgage (P&I): −$367
• Tax + insurance: −$67
• HOA: −$0
• Vac / Maint / Mgmt: −$215
• Net cashflow: $377/mo
• Annual: $4,518/yr
• Cap rate: 12.75%
• Cash-on-cash: 23.05%
• DSCR: 2.03
• 1% rule: 1.47%
• Cash to close: $19,600

Investor read

• This is a 3-bed/2.0-bath other listed at $70k.
• At list price, monthly cash flow is $377 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $70k).
• It's been on market 43 days — a 3% lower offer ($68k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $68k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $484 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#270 in KY) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety D+, employment D, amenities F.
• Laurel County (town): math 51% / reading 56% proficiency, ranked #8 of 165 in KY (top 5%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Johnson Elementary School (math 62% / reading 62%, grade B, #24 of 676 statewide, top 4%, 334 students, 66% FRL); North Laurel Middle School (math 48% / reading 59%, grade C+, #13 of 217 statewide, top 6%, 1,003 students, 64% FRL); North Laurel High School (math 37% / reading 42%, grade F, #40 of 254 statewide, top 19%, 1,300 students, 58% FRL) — zoned schools at 63% FRL track the district average.
• Market conditions: 246 active listings in the ZIP; 16 units permitted in Laurel County in 2024 (0 in 5+ unit buildings).
• 3 sale attempts; this cycle's ask has dropped $70k (50%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $20k cash investment doubles in ~6 years — after that, you're playing with house money.
• Climate carrying-cost: severe wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 43 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• 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.