86 Elm Ave

Monticello, KY 42544

$80,000B+

2 bd · 1.0 ba · 768 sqft · Built — · SingleFamily · Active · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,169/mo
• Mortgage (P&I): −$420
• Tax + insurance: −$133
• HOA: −$0
• Vac / Maint / Mgmt: −$246
• Net cashflow: $371/mo
• Annual: $4,448/yr
• Cap rate: 11.85%
• Cash-on-cash: 19.86%
• DSCR: 1.88
• 1% rule: 1.46%
• Cash to close: $22,400

Investor read

• This is a 2-bed/1.0-bath single-family listed at $80k. Condition is rated fair.
• At list price, monthly cash flow is $371 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $80k).
• It's been on market 28 days — a 2% lower offer ($79k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $79k (1.5% below list) — sets the bar for market timing.
• In year one you build about $510 of equity ($553 loan paydown + $-43 appreciation (-0.1% local appreciation)).
• Location reads 65/100 on livability (#265 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools F, amenities F, commute F.
• Wayne County (town): math 20% / reading 33% proficiency, ranked #142 of 165 in KY (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 172 active listings in the ZIP.
• Wayne County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-0.1% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~5 years — after that, you're playing with house money.
• Cap rate 11.9% vs local median 3.9% in Monticello — 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.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.

Repairs flagged (vision-AI assessment)

• Major: siding — Significant wear and tear
• Major: roof — Signs of wear
• Major: flooring — Exposed subflooring
• Major: exterior landscaping — Overgrown vegetation