Lyndon Plan

Evansville, IN 47725

$396,000F

4 bd · 2.5 ba · 2,520 sqft · Built — · SingleFamily · Active · 111 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,200/mo
• Mortgage (P&I): −$2,408
• Tax + insurance: −$765
• HOA: −$0
• Vac / Maint / Mgmt: −$672
• Net cashflow: $-645/mo
• Annual: $-7,740/yr
• Cap rate: 4.61%
• Cash-on-cash: -6.02%
• DSCR: 0.73
• 1% rule: 0.70%
• Cash to close: $128,557

Investor read

• This is a 4-bed/2.5-bath single-family listed at $396k. Condition is rated excellent.
• At list price, monthly cash flow is $-645 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $366k (7.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $320k (19.2% below list).
• It's been on market 111 days — a 9% lower offer ($360k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $320k (19.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#416 in IN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, commute F, employment D-.
• Evansville Vanderburgh School Corporation (urban): math 36% / reading 43% proficiency, ranked #153 of 301 in IN (top 51%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Oak Hill Elementary (math 61% / reading 62%, grade B, #117 of 994 statewide, top 12%, 547 students, 27% FRL); North Junior High School (math 44% / reading 57%, grade C, #43 of 330 statewide, top 14%, 929 students, 42% FRL); North High School (math 57% / reading 74%, grade B, #29 of 369 statewide, top 8%, 1,674 students, 35% FRL) — zoned schools average 35% FRL vs 50% district-wide (15 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 59% at this address vs 40% district-wide (+20 pts) — the actual schools serving this property are materially stronger than the Evansville Vanderburgh School Corporation average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: 575 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 508 units permitted in Vanderburgh County in 2024 (32 in 5+ unit buildings).
• This rent runs 36% of the median local income ($106k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for 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 111 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• 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?
• Crime grade is F 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?
• 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.