1105 Squirrell Tail Hollow Rd

Cannelton, IN 42348

$139,900D+

3 bd · 2.0 ba · 1,568 sqft · Built 1991 · SingleFamily · Pending · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,202/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$107
• HOA: −$0
• Vac / Maint / Mgmt: −$252
• Net cashflow: $109/mo
• Annual: $1,307/yr
• Cap rate: 7.23%
• Cash-on-cash: 3.34%
• DSCR: 1.15
• 1% rule: 0.86%
• Cash to close: $39,172

Investor read

• This is a 3-bed/2.0-bath single-family listed at $140k.
• At list price, monthly cash flow is $109 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $120k (14.1% below list).
• It's been on market 27 days — a 2% lower offer ($138k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $120k (14.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.7%/yr); year-one equity from $967 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 53/100 on livability (#643 in IN) — a working-class tenant base; expect higher turnover. Strengths: crime A+, cost of living A+, housing B+; Watch: amenities F, commute F, employment F.
• Hancock County (rural): math 31% / reading 45% proficiency, ranked #38 of 165 in KY (top 23%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: North Hancock Elementary School (math 27% / reading 39%, grade F, #338 of 676 statewide, top 50%, 472 students, 61% FRL); Hancock County Middle School (math 32% / reading 50%, grade F, #54 of 217 statewide, top 25%, 333 students, 56% FRL); Hancock County High School (math 37% / reading 42%, grade F, #40 of 254 statewide, top 19%, 483 students, 46% FRL).
• Market conditions: 9 units permitted in Hancock County in 2024 (0 in 5+ unit buildings).
• Hancock County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts since 8y ago 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 $46k; list at $140k implies a 203% gain — meaningful room to come down on a strong offer.

Questions for listing agent

• 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?
• 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.