606 Adams St

Cannelton, IN 47520

$56,700B+

3 bd · 2.0 ba · 1,722 sqft · Built 1940 · SingleFamily · Active · 102 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,220/mo
• Mortgage (P&I): −$297
• Tax + insurance: −$91
• HOA: −$0
• Vac / Maint / Mgmt: −$256
• Net cashflow: $575/mo
• Annual: $6,898/yr
• Cap rate: 18.46%
• Cash-on-cash: 43.45%
• DSCR: 2.93
• 1% rule: 2.15%
• Cash to close: $15,876

Investor read

• This is a 3-bed/2.0-bath single-family listed at $57k.
• At list price, monthly cash flow is $575 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $57k).
• It's been on market 102 days — a 9% lower offer ($52k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $52k (9.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($392 loan paydown + $4k appreciation (6.5% local appreciation)).
• 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: schools F, amenities F, commute F.
• Cannelton City Schools (town): math 20% / reading 30% proficiency, ranked #303 of 324 in IN (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 65% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 14 active listings in the ZIP; 31 units permitted in Perry County in 2024 (0 in 5+ unit buildings).
• Perry County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (6.5% appreciation + 3.0% rent growth), your $16k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→20/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 102 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• 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.