Is 1926 Ernie Way in Charlestown, IN a good investment?

CashFlowRE grades it D- with a 5.4% cap rate and $-150/mo modeled cash flow at a $209,900 list price. See the full underwriting and recommended offer on the page.

What is the cap rate for 1926 Ernie Way?

The modeled cap rate is 5.4% — annual NOI divided by price, using CashFlowRE's rent and expense estimates.

What would this property rent for?

Estimated market rent is $1,710/month, from CashFlowRE's rent model.

D- Composite 39.43

Why this score? — see what drove the D- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

ARV discount +10.0/15.0
Cash flow +9.4/30.0
Condition / age +5.0/5.0
Schools +3.5/10.0
Livability +3.2/5.0
1% rule +3.1/10.0
DSCR +2.6/10.0
Rent growth +2.5/5.0
Appreciation +0.0/10.0

$209,900

1926 Ernie Way · Charlestown, IN 47111

3 bd · 2.0 ba · 1,000 sqft · SingleFamily · 161 Days on market

Built 2026 Excellent condition 2,613 sqft lot $210/sqft · 6% below area Est $222k · 6% under $50/mo HOA · 3% of rent ↓ 2% since listing

🖨 Deal sheet (PDF) 📄 Offer letter ✓ Due diligence

Listing remarks

$10,000 builder incentive with builder's preferred lender and is eligible for 100% USDA!! Builder will consider builder financing on a case by case basis. This 3-bedroom, 2-bath home features a beautiful stone and siding exterior, opening into an inviting interior with durable LVP flooring throughout! The heart of the home is a bright kitchen equipped with sleek stainless steel appliances, high-quality custom cabinets and trim that add a sophisticated touch. Enjoy a low-maintenance lifestyle as the HOA handles all lawn mowing, ground upkeep and mailbox maintenance, leaving you more time to relax. This affordable gem is what you have been waiting for!

Key facts

Bright kitchen
Durable lvp flooring
2,613 sq ft lot

What this means for you Summary

Snapshot

This is a 3-bed/2.0-bath single-family listed at $210k. Condition is rated excellent.

Deal economics

At list price, monthly cash flow is $-150 ($-2k/yr) — negative.
To cash-flow at today's rent, offer at most $188k (10.3% below list).
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $171k (18.5% below list).
Recommended offer: $171k (18.5% below list) — sets the bar for 1% rule.
Cap rate 5.4% vs local median 3.5% in Charlestown — 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.

Location & tenants

Location reads 65/100 on livability (#352 in IN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
Greater Clark County Schools (suburban): math 26% / reading 37% proficiency, ranked #224 of 301 in IN (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Zoned schools: Jonathan Jennings Elementary Sch (math 37% / reading 35%, grade F, #577 of 994 statewide, top 59%, 477 students, 51% FRL); Charlestown Middle School (math 23% / reading 40%, grade F, #197 of 330 statewide, top 60%, 612 students, 44% FRL); Charlestown Senior High School (math 17% / reading 57%, grade F, #247 of 369 statewide, top 70%, 788 students, 40% FRL) — zoned schools at 45% FRL track the district average.
Market conditions: 436 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals lingering (median 58d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 57% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 911 units permitted in Clark County in 2024 (133 in 5+ unit buildings).

Forward outlook

Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
Clark County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

It's been on market 161 days — a 12% lower offer ($185k) is reasonable based on typical stale-listing flexibility.

Recommended offer $171,019 (18.5% below list)

Questions for the listing agent

What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
It's been on market 161 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
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 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?
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.

Investment metrics

1% rule: 0.81% ✗
Cap rate: 5.44%
Cash-on-cash: -3.05%
DSCR: 0.86
GRM: 10.2

CMA / ARV

ARV (median comp): $222,284
List price: $209,900
Delta: -5.57%
Verdict: FAIR
Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
118 Clark Rd	0.37mi	3/2.0	1,099 (+10%)	2mo	$197,900	$180	64
211 Guilford Ave	0.41mi	3/2.0	1,085 (+8%)	3mo	$205,000	$189	64
120 Marshall Dr	0.41mi	3/2.0	1,099 (+10%)	6mo	$215,000	$196	59
225 Halcyon Rd	0.49mi	3/2.0	1,065 (+6%)	13mo	$205,000	$192	56
223 Halcyon Rd	0.49mi	3/2.0	1,065 (+6%)	13mo	$199,999	$188	56
217 Halcyon Rd	0.48mi	3/2.0	1,065 (+6%)	14mo	$199,999	$188	55
211 Halcyon Rd	0.48mi	3/2.0	1,065 (+6%)	14mo	$204,999	$192	55
320 Highland Dr	0.67mi	3/2.0	1,078 (+8%)	15mo	$225,000	$209	43
15 Charles Pl	0.50mi	2/1.0 (-1)	884 (-12%)	10mo	$179,900	$204	40
135 Maple Dr	0.65mi	3/2.0	1,136 (+14%)	14mo	$207,500	$183	35
766 Oak St	0.52mi	2/1.0 (-1)	864 (-14%)	13mo	$163,000	$189	33
127 Locust St	0.71mi	3/1.0	875 (-12%)	14mo	$190,000	$217	31

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

IRR: -21.4%
Equity multiple: 0.26×
Total profit: $-43,479
Equity at exit: $31,297

10-year hold

IRR: -14.9%
Equity multiple: 0.15×
Total profit: $-49,894
Equity at exit: $18,148

Cash invested: $58,772 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

Overall (STATE): 90 Strongly Landlord-Friendly
State Indiana: 90 Strongly Landlord-Friendly · R+11
County: — inherits STATE
City: — inherits STATE

10-day pay-or-quit; landlord-favorable; preempted.

Methodology + full state rankings →

Buyer's market Market conditions within 1.0 mi — comparable homes for sale

Active competition Active MLS

For sale now: 21 active
Months of supply: 6.3 mo (16%/mo absorbed)
Median asking: $208,900 ($193/sqft)
Median days on market: 24 d
This list price: 52% of active listings are priced below it
ARV vs active asking: +14.9% above current asking $/sqft

Closed sales set the value; these active listings set current market conditions and a practical price ceiling.

ZIP-level market 47111

Active inventory: 436
Price-to-rent: 10.2×

Monthly cashflow live

Estimated rent: $1,710 high interval (Pro) →
Mortgage (P&I): −$1,101
Tax est. 1.5%: −$262 /mo · $3,148/yr
Insurance: −$87
HOA: −$50
Lot rent: −$0
Vacancy / Maint / Mgmt: −$359
Net cashflow: $-150

Break-even live

Break-even rent $1,899

Max offer price $188,264

Occupancy floor —

Sensitivity live

Price	-10% $-4	-5% $-77	+0% $-150	+5% $-222	+10% $-295
Rent	-10% $-285	-5% $-217	+0% $-150	+5% $-82	+10% $-14
Rate	-1.0pp $-44	-0.5pp $-96	base $-150	+0.5pp $-204	+1.0pp $-259

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

Down payment: $52,475
Closing costs: $6,297
Club membership (one-time): —
Reserves months: —
Total cash needed: —

Loan-product check · same deal, 3 products live

Conventional

25% down · 7.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Personal DTI + credit; lowest rate.

DSCR

20% down · 8.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

No personal income docs; deal must DSCR.

Hard money

10% down · 12.0% · 12mo

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Short-term bridge; refi at stabilization.

Rent comps 7 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1210 Market St Charlestown, IN	3.0	1.0	1200	$1,749	$1.46	99d	1	0.19mi
213 Lowell Ave Charlestown, IN	3.0	2.0	1416	$1,700	$1.20	139d	1	0.56mi
211 Level St Charlestown, IN	3.0	1.5	1300	$1,600	$1.23	0d	1	0.88mi
1155 Highway 62 Charlestown, IN	1.0–2.0	1.0–2.0	1043	$1,650	$1.58	0d	108	0.95mi
131 Level St Unit 6 Charlestown, IN	3.0	2.0	1100	$1,750	$1.59	0d	1	0.99mi
1811 Edgewood Dr Charlestown, IN	3.0	1.0	951	$1,100	$1.16	58d	1	1.00mi
2034 Harmony Ln Charlestown, IN	3.0	2.0	1402	$2,000	$1.43	58d	1	1.33mi

Property features AI

Finance

HOA & community: Homeowners association with $50 monthly fee

Exterior

Utilities: Connected public waterPublic sewer
Home design: Single-story homeNew constructionModel: Lilly A by Murphy Homes
Construction: Frame, stone, and vinyl siding exteriorShingle roofBlock foundationUnder construction
Exterior features: Paved road accessResidential zoning

Interior

Kitchen: DishwasherDisposalMicrowaveOvenRangeKitchen islandEat-in kitchen
Bedrooms: Bedroom on main level (9.3 x 10.5)Bedroom on main level (9.4 x 10.5)Additional main level room (11.6 x 10.5) - unspecified type
Bathrooms: Two full bathrooms on main level (each approx. 5 x 9)
Heating & cooling: Heat pump heatingCentral air conditioning
Interior features: Ceiling fan(s)Eat-in kitchenKitchen islandPrimary bedroom with private bathMain level primary bedroomCable TVUtility roomWalk-in closet(s)
Laundry & utility: Main level laundry roomUtility room

Listing history 50 events

2026-09-24

days on market $209,900 Active 161 DOM
2026-09-23

days on market $209,900 Active 160 DOM
2026-09-22

days on market $209,900 Active 159 DOM
2026-09-21

days on market $209,900 Active 158 DOM
2026-09-20

days on market $209,900 Active 157 DOM
2026-09-19

days on market $209,900 Active 156 DOM
2026-09-18

days on market $209,900 Active 155 DOM
2026-09-17

days on market $209,900 Active 154 DOM
2026-09-16

days on market $209,900 Active 153 DOM
2026-09-15

days on market $209,900 Active 152 DOM
2026-09-14

days on market $209,900 Active 151 DOM
2026-09-13

days on market $209,900 Active 150 DOM
2026-09-12

days on market $209,900 Active 149 DOM
2026-09-11

days on market $209,900 Active 148 DOM
2026-09-05

days on market $209,900 Active 142 DOM
2026-09-04

days on market $209,900 Active 141 DOM
2026-09-03

days on market $209,900 Active 140 DOM
2026-08-31

days on market $209,900 Active 137 DOM
2026-08-29

days on market $209,900 Active 135 DOM
2026-08-28

days on market $209,900 Active 134 DOM
2026-08-27

days on market $209,900 Active 133 DOM
2026-08-26

days on market $209,900 Active 132 DOM
2026-08-25

days on market $209,900 Active 131 DOM
2026-08-24

days on market $209,900 Active 130 DOM
2026-08-23

days on market $209,900 Active 129 DOM
2026-08-22

days on market $209,900 Active 128 DOM
2026-08-21

days on market $209,900 Active 127 DOM
2026-08-20

days on market $209,900 Active 126 DOM
2026-08-19

days on market $209,900 Active 125 DOM
2026-08-18

days on market $209,900 Active 124 DOM
2026-08-17

days on market $209,900 Active 123 DOM
2026-08-16

days on market $209,900 Active 122 DOM
2026-08-15

days on market $209,900 Active 121 DOM
2026-08-14

days on market $209,900 Active 120 DOM
2026-08-13

days on market $209,900 Active 119 DOM
2026-08-12

days on market $209,900 Active 118 DOM
2026-08-11

days on market $209,900 Active 117 DOM
2026-08-10

days on market $209,900 Active 116 DOM
2026-08-09

days on market $209,900 Active 115 DOM
2026-08-08

days on market $209,900 Active 114 DOM
2026-08-07

days on market $209,900 Active 113 DOM
2026-08-06

days on market $209,900 Active 112 DOM
2026-08-05

days on market $209,900 Active 111 DOM
2026-08-04

days on market $209,900 Active 110 DOM
2026-08-03

days on market $209,900 Active 109 DOM
2026-07-31

days on market $209,900 Active 106 DOM
2026-07-30

days on market $209,900 Active 105 DOM
2026-07-30

days on market $209,900 Active 104 DOM
2026-07-28

days on market $209,900 Active 103 DOM
2026-07-26

days on market $209,900 Active 101 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Nearby sold comps map

Loading sold comps map…

Walkable amenities ~0.75 mi

Loading nearby amenities…

Taxation est. · year 1

Rental income: $20,522
− Mortgage interest: −$11,758
− Property taxes: −$3,148
− Insurance: −$1,050
− Repairs & maintenance: −$1,642
− Management: −$1,642
− HOA: −$600
− Depreciation: −$6,106
Taxable loss: −$5,423

Your marginal tax rate % combined federal + state — saved on this device

Est. tax savings @ 24.0%: +$1,302
After-tax cash flow: $-493/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 4 photos

Excellent 100/100 None rehab

This new construction home features a beautiful stone and siding exterior, durable LVP flooring, and high-quality custom cabinets and trim. It is move-in ready and ready for immediate occupancy.

Value-add opportunities

Resale Kitchen appliances — Sleek stainless steel appliances enhance the home's appeal ↑
Resale Custom cabinets and trim — High-quality custom cabinets and trim add sophistication ↑
Both Landscaping and curb appeal — Well-maintained landscaping and curb appeal improve the home's overall appearance ↑

F Composite school gradezoned avg 35/100

Zoned Schools

Elementary Jonathan Jennings Elementary Sch F IN #577/994 Nat'l #22,595/41,679 Middle Charlestown Middle School F IN #197/330 Nat'l #8,497/14,009 High Charlestown Senior High School F IN #247/369 Nat'l #9,001/17,239

Schools (NCES district)

District: Greater Clark County Schools
NCES district ID: 1803940
Math proficiency: 26% ▼ -15.00%
Reading proficiency: 37% ▼ -13.00%
Median HH income: $47,838
Composite: 27.2/100
National rank: #7020
State rank: #224 of 301 in IN

C Composite livability gradescore 65/100

Livability — Charlestown

Score: 65/100
State rank: #352
US rank: #13430

Category grades

Amenities F Commute F Cost of living A+ Crime A+ Employment C+ Housing A+ Health & safety F User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

Census place: Charlestown, IN
County: Clark County · 126,401 people
City population: 17,738
Metro: Louisville/Jefferson County, KY-IN
Population (ZIP): 17,738
Household income: $95,376
Rent vs Own: 13.4% rent · 86.6% own
Severe rent burden: 8% of renters

Population outlook (Clark County) Hauer SSP2

Today (2025): 126,401 people
By 2030: 131,455 · +4.0%
By 2040: 140,471 · +11.1%
By 2050: 147,677 · +16.8%
By 2075: 161,702 · +27.9%
By 2100: 164,078 · +29.8%

Race, ethnicity, and origin ACS 2023

Neighborhood character: Predominantly White (87%)
Race & ethnicity: White 87% Two or more races 5% Hispanic / Latino 4% Black 3%
Common ancestry: Italian 2% Lithuanian 2% Romanian 2%
Foreign-born: 3% · Canada, China
Languages at home: 95% English-only · Spanish 3% Chinese 1%

Political lean MEDSL · Clark

2024 margin: Strong R (+20.4) · D 38.9% · R 59.3% · Other 1.8%
2008→2024 swing: -13.3pp toward R · 2008: -7.1pp · 2024: -20.4pp
All cycles: 2024: R+20.4 2020: R+18.3 2016: R+22.0 2012: R+9.9 2008: R+7.1

Not yet ingested

Civics: —

Market trends

HPI YoY: ▼ -126.16%
Current HPI: 198.7046
Rent YoY: —
Metro: Louisville/Jefferson County, KY-IN
State GDP YoY: ▲ 2.90%
F500 in state: 18

Industry mix (Fortune 500 HQ in IN)

Industry	F500 HQs	Revenue
Industrial Machinery	2	$37B
#125 Cummins Columbus $33.4B #416 Allegion Dublin $3.6B
Healthcare	1	$177B
#20 Elevance Health Indianapolis $177.0B
Pharmaceuticals	1	$45B
#100 Eli Lilly Indianapolis $45.0B
Metals / Steel	1	$18B
#179 Steel Dynamics Fort Wayne $18.2B
Agriculture	1	$17B
#210 Corteva Agriscience Indianapolis $16.5B
Packaging	1	$12B
#474 Berry Global Group Evansville $12.3B

Price history

-2.3% since first listed

2 events — show timeline

2026-05-27 Price Changed $209,900 SIRA
2026-04-16 Listed $214,900 SIRA

Cash-flow waterfall

monthly

Sold comps — $/sqft

last 12 mo · ≤1 mi

Loading sold comps…