1945 Lambert Schoolhouse Rd

Hawesville, KY 42348

$89,000B

3 bd · 2.0 ba · 1,344 sqft · Built 2000 · SingleFamily · Active · 58 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,188/mo
• Mortgage (P&I): −$467
• Tax + insurance: −$123
• HOA: −$0
• Vac / Maint / Mgmt: −$249
• Net cashflow: $349/mo
• Annual: $4,190/yr
• Cap rate: 11.90%
• Cash-on-cash: 20.01%
• DSCR: 1.89
• 1% rule: 1.33%
• Cash to close: $24,920

Investor read

• This is a 3-bed/2.0-bath single-family listed at $89k.
• At list price, monthly cash flow is $349 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $89k).
• It's been on market 58 days — a 3% lower offer ($86k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $86k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.7%/yr); year-one equity from $615 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#237 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D, amenities F, commute 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).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 25 active listings in the ZIP; 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.
• Current owner paid $16k; list at $89k implies a 439% gain — meaningful room to come down on a strong offer.
• At projected returns (-1.7% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~6 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.