3 bd · 2.0 ba ·
1,504 sqft ·
Built 1889
· SingleFamily
· Active
· 58 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$1,341/mo
Mortgage (P&I)
−$409
Tax + insurance
−$156
HOA
−$0
Vac / Maint / Mgmt
−$282
Net cashflow
$495/mo
Annual
$5,935/yr
Cap rate
13.90%
Cash-on-cash
27.17%
DSCR
2.21
1% rule
1.72%
Cash to close
$21,840
Investor read
This is a 3-bed/2.0-bath single-family listed at $78k.
At list price, monthly cash flow is $495 ($6k/yr) — positive.
The deal already cash-flows at list — no discount required.
Meets the 1% rule at list price ($1k rent vs $78k).
It's been on market 58 days — a 3% lower offer ($76k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $76k (3.0% below list) — sets the bar for market timing.
Local home prices are declining (-3.0%/yr); year-one equity from $539 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
Location reads 68/100 on livability (#227 in IN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A; Watch: crime D, amenities F, commute F.
Kokomo School Corporation (urban): math 22% / reading 30% proficiency, ranked #264 of 301 in IN (top 88%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
Zoned schools: Elwood Haynes Elementary School (math 22% / reading 17%, grade F, #814 of 994 statewide, top 83%, 611 students, 88% FRL); Kokomo High School (math 19% / reading 48%, grade F, #289 of 369 statewide, top 78%, 1,519 students, 58% FRL).
Watch-outs: built in 1889 — expect roof / HVAC / electrical / plumbing capex.
Market conditions: Rents soft (-1.5%/yr); 242 active listings in the ZIP; 194 units permitted in Howard County in 2024 (0 in 5+ unit buildings).
Howard County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
2 sale attempts since 12y ago; this cycle's ask has dropped $10k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
Current owner paid $19k; list at $78k implies a 311% gain — meaningful room to come down on a strong offer.
At projected returns (-3.0% appreciation + 0.0% rent growth), your $22k cash investment doubles in ~6 years — after that, you're playing with house money.
Cap rate 13.9% vs local median 5.2% in Kokomo — 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.
Questions for listing agent
It's been on market 58 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
Built in 1889 — 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.
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?
Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
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.
CashFlowRE · CFR-SYD602BDZX2MWG
· Data 3 weeks agocashflowre.app · 2026-05-29