54235 Terrace Ln · South Bend, IN 46635

$120,000

3 bd · 1.0 ba · 1,072 sqft · SingleFamily public records · 3 Days on market

Built 1940 10,019 sqft lot Est $179k · 33% under

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Why this score? — see what drove the C+ 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).

• Cash flow +23.8/30.0
• ARV discount +15.0/15.0
• 1% rule +7.7/10.0
• DSCR +7.6/10.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +1.4/10.0
• Appreciation +0.0/10.0

Listing remarks

* * * Multiple Offers Received - Highest & Best by 6pm. Sat. May 23. Response by 5pm. Mon. May 25. * * * Get into this great opportunity for investors, flippers, or handy buyers just over a mile from Notre Dame! This 3 bed, 1 bath, 1,072 sqft. home offers strong potential with several updates already completed, including a newer furnace (approx. 4–5 years), newer well (approx. 4 years), and updated garage spring/opener with keypad entry. Features include a 2-car detached garage, off-street parking, updated bathroom, some nicer wood flooring in bedrooms, unfinished basement, and convenient side kitchen entry. The spacious primary bedroom with room to potentially add a half b

Key facts

• Newer furnace
• Newer well
• Off-street parking

Tags

• NEWER FURNACE
• NEWER WELL
• 2-CAR DETACHED GARAGE
• OFF-STREET PARKING
• UPDATED BATHROOM
• SLIDER LEADING TO BACK DECK

Property features AI

Finance

• HOA & community: No association amenities

Exterior

• Parking: Detached garage; 2 garage spaces; Garage door opener; Off-street parking; Gravel parking
• Security: Security system
• Utilities: Private well water; Septic tank
• Home design: Single-family residence; Site-built home; 1 story
• Construction: Shingle roof; Block foundation; Other construction materials; Basement (partial, unfinished, crawl space) with sump pump; 1,072 above-grade finished area
• Exterior features: Deck; Partial fencing; Above-ground private pool

Interior

• Kitchen: Microwave; Refrigerator; Electric range; Freezer
• Flooring: Carpet; Laminate
• Bathrooms: 1 full bathroom
• Heating & cooling: Natural gas forced-air heating; Central air conditioning; Ceiling fan cooling
• Interior features: Ceiling fans; Laminate countertops; Security system
• Laundry & utility: Washer; Dryer; Laundry on lower level; Gas water heater

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $120k.

Deal economics

• At list price, monthly cash flow is $230 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $120k).
• Cap rate 8.6% vs local median 4.4% in South Bend — 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 64/100 on livability (#365 in IN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities D, employment D, crime F.
• South Bend Community School Corporation (urban): math 12% / reading 21% proficiency, ranked #284 of 301 in IN (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 66% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Edison Middle School (math 7% / reading 13%, grade F, #314 of 330 statewide, top 95%, 381 students, 84% FRL); Adams High School (math 28% / reading 57%, grade F, #195 of 369 statewide, top 53%, 1,976 students, 56% FRL) — zoned schools at 70% FRL track the district average.
• Market conditions: 32 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; 754 units permitted in St. Joseph County in 2024 (460 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $830 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.

Negotiation context

• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: property tax is 2.9% of price; built in 1940 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $120,000

Questions for the listing agent

1. Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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?
6. 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.
7. 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.
8. 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: 1.27% ✓
• Cap rate: 8.59%
• Cash-on-cash: 8.20%
• DSCR: 1.36
• GRM: 6.6

CMA / ARV

• ARV (on-the-fly): $179,024
• Comps found: 6

Show comp detail 6 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
54235 Terrace Ln	0.00mi	3/1.0	1,072 (0%)	0mo	$110,000	$103	100
54174 Maple Lane Ave	0.10mi	2/1.0 (-1)	1,080 (+1%)	4mo	$180,000	$167	86
54437 Terrace Ln	0.22mi	4/1.0 (+1)	1,055 (-2%)	18mo	$185,000	$175	67
54305 Terrace Ln	0.08mi	3/1.0	1,181 (+10%)	24mo	$145,000	$123	60
1640 Vernerlee Ln	0.60mi	3/1.0	1,107 (+3%)	12mo	$229,000	$207	57
54722 Northern Ave	0.53mi	3/1.0	1,100 (+3%)	20mo	$145,000	$132	54

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: -3.7%
• Equity multiple: 0.86×
• Total profit: $-4,709
• Equity at exit: $17,892

10-year hold

• IRR: 6.0%
• Equity multiple: 1.45×
• Total profit: $15,181
• Equity at exit: $10,375

Cash invested: $33,600 (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 →

ZIP-level market 46635

• Home prices YoY: -29.8%
• Active inventory: 32
• Price-to-rent: 6.6×

Monthly cashflow live

• Estimated rent: $1,520 medium
• Mortgage (P&I): −$629
• Tax from tax record: −$292 /mo · $3,503/yr
• Insurance: −$50
• HOA: −$0
• Vacancy / Maint / Mgmt: −$319
• Net cashflow: $230

Break-even live

Break-even rent $1,229

Max offer price $120,000

Occupancy floor 80%

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: $30,000
• Closing costs: $3,600
• Reserves months: —
• Total cash needed: —

Rent comps 4 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1512 Rosemary Ln South Bend, IN	2.0	1.0	910	$1,138	$1.25	20d	1	0.72mi
5640 Irish Way Mishawaka, IN	3.0	2.0	1189	$1,675	$1.41	43d	1	1.09mi
5630 University Park Dr Mishawaka, IN	1.0–3.0	1.0–1.5	950	$2,003	$2.11	13d	17	1.33mi
1145 N Eddy St South Bend, IN	3.0	1.0–3.0	959	$4,377	$4.56	43d	1	1.48mi

Listing history 1 events

1. 2026-05-21
   listed $120,000 Active

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

Tax reassessment forecast IN · Partial reset (capped growth)

• Current annual tax: $3,503 · $292/mo
• Projected year-2 tax: $3,503 · $292/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥99°F today · 16 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $18,241
• − Mortgage interest: −$6,722
• − Property taxes: −$3,503
• − Insurance: −$600
• − Repairs & maintenance: −$1,459
• − Management: −$1,459
• − Depreciation: −$3,491
• Taxable income: $1,007
• Est. tax owed @ 24.0%: −$242
• After-tax cash flow: $2,514/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.

Schools (NCES district)

• District: South Bend Community School Corporation
• NCES district ID: 1810290
• Math proficiency: 12% ▼ -10.00%
• Reading proficiency: 21% ▼ -6.00%
• Median HH income: $41,935
• Composite: 14.21/100
• National rank: #9452
• State rank: #284 of 301 in IN

Livability — South Bend

• Score: 64/100
• State rank: #365
• US rank: #13730

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• City population: 99,767
• Population (ZIP): 6,552

Population outlook (St. Joseph County) Hauer SSP2

• Today (2025): 273,186 people
• By 2030: 273,594 · +0.1%
• By 2040: 271,641 · -0.6%
• By 2050: 269,187 · -1.5%
• By 2075: 263,136 · -3.7%
• By 2100: 245,659 · -10.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (84%)
• Race & ethnicity: White 84% Two or more races 8% Black 5% Asian 3% Hispanic / Latino 1%
• Common ancestry: Romanian 7% Slovak 2% Iranian 2%
• Foreign-born: 4% · Canada, China, Vietnam
• Languages at home: 95% English-only · Spanish 1% Vietnamese 1% Arabic 1%

Political lean MEDSL · St. Joseph

• 2024 margin: Toss-up / Even · D 50.0% · R 48.5% · Other 1.5%
• 2008→2024 swing: -15.6pp toward R · 2008: 17.1pp · 2024: 1.5pp
• All cycles: 2024: D+1.5 2020: D+5.8 2016: D+0.2 2012: D+3.5 2008: D+17.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -90.65%
• Current HPI: 213.5397
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.90%
• F500 in state: 18

Industry mix (Fortune 500 HQ in IN)

Industry	F500 HQs	Revenue
▸Industrial Machinery	2	$37B
▸Healthcare	1	$177B
▸Pharmaceuticals	1	$45B
▸Metals / Steel	1	$18B
▸Agriculture	1	$17B
▸Packaging	1	$12B

Price history

1 event — show timeline

• 2026-05-21 Listed $120,000 IRMLS

Property tax history

+18.0%/yr

Latest (2023): $3,503 · +132.1% YoY. Source: county tax records.