1243 E State Road 26

Cutler, IN 46041

$123,000C+

3 bd · 1.0 ba · 2,099 sqft · Built 1968 · SingleFamily · Pending · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,435/mo
• Mortgage (P&I): −$645
• Tax + insurance: −$142
• HOA: −$0
• Vac / Maint / Mgmt: −$301
• Net cashflow: $347/mo
• Annual: $4,161/yr
• Cap rate: 9.68%
• Cash-on-cash: 12.08%
• DSCR: 1.54
• 1% rule: 1.17%
• Cash to close: $34,440

Investor read

• This is a 3-bed/1.0-bath single-family listed at $123k.
• At list price, monthly cash flow is $347 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $123k).
• It's been on market 27 days — a 2% lower offer ($121k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $121k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $850 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Rossville Consolidated School District (rural): math 40% / reading 56% proficiency, ranked #65 of 301 in IN (top 22%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Rossville Elementary School (math 57% / reading 55%, grade C+, #183 of 994 statewide, top 19%, 472 students, 36% FRL); Rossville Middle/Senior High Sch (math 27% / reading 56%, grade F, #211 of 369 statewide, top 58%, 488 students, 26% FRL).
• Market conditions: 129 active listings in the ZIP; 59 units permitted in Clinton County in 2024 (0 in 5+ unit buildings).
• Clinton County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 3y 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~10 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1968 — 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 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.