306 W Michigan St

Rolling Prairie, IN 46371

$197,500D-

3 bd · 1.5 ba · 1,896 sqft · Built 1927 · SingleFamily · Pending · 62 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,420/mo
• Mortgage (P&I): −$1,036
• Tax + insurance: −$173
• HOA: −$0
• Vac / Maint / Mgmt: −$298
• Net cashflow: $-87/mo
• Annual: $-1,040/yr
• Cap rate: 5.77%
• Cash-on-cash: -1.88%
• DSCR: 0.92
• 1% rule: 0.72%
• Cash to close: $55,300

Investor read

• This is a 3-bed/1.5-bath single-family listed at $198k.
• At list price, monthly cash flow is $-87 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $182k (7.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $142k (28.1% below list).
• It's been on market 62 days — a 6% lower offer ($186k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $142k (28.1% below list) — sets the bar for 1% rule.
• 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.
• Location reads 75/100 on livability (#65 in IN, #4,305 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: commute D+, amenities F, health & safety D-.
• New Prairie United School Corporation (rural): math 46% / reading 54% proficiency, ranked #47 of 301 in IN (top 16%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Rolling Prairie Elementary School (math 60% / reading 48%, grade C, #221 of 994 statewide, top 22%, 434 students, 52% FRL); New Prairie Middle School (math 32% / reading 49%, grade F, #117 of 330 statewide, top 36%, 705 students, 40% FRL); New Prairie High School (math 33% / reading 69%, grade D+, #115 of 369 statewide, top 31%, 979 students, 33% FRL).
• Watch-outs: built in 1927 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 17 active listings in the ZIP; 216 units permitted in LaPorte County in 2024 (75 in 5+ unit buildings).
• LaPorte County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 8 sale attempts since 25y ago; this cycle's ask has dropped $28k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.

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 62 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• Built in 1927 — 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.