274 4th St

Economy, IN 47339

$30,500B+

3 bd · 2.0 ba · 1,344 sqft · Built 1910 · SingleFamily · Pending · 244 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,198/mo
• Mortgage (P&I): −$160
• Tax + insurance: −$51
• HOA: −$0
• Vac / Maint / Mgmt: −$252
• Net cashflow: $736/mo
• Annual: $8,832/yr
• Cap rate: 35.25%
• Cash-on-cash: 103.42%
• DSCR: 5.60
• 1% rule: 3.93%
• Cash to close: $8,540

Investor read

• This is a 3-bed/2.0-bath single-family listed at $30k.
• At list price, monthly cash flow is $736 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $30k).
• It's been on market 244 days — a 12% lower offer ($27k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $27k (12.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($211 loan paydown + $2k appreciation (5.8% local appreciation)).
• Location reads 60/100 on livability (#545 in IN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, crime D+, amenities F.
• Nettle Creek School Corporation (rural): math 37% / reading 51% proficiency, ranked #104 of 301 in IN (top 35%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hagerstown Elementary School (math 39% / reading 48%, grade F, #411 of 994 statewide, top 42%, 626 students, 47% FRL); Hagerstown Jr-Sr High School (math 35% / reading 56%, grade D-, #164 of 369 statewide, top 45%, 528 students, 42% FRL).
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 38 units permitted in Wayne County in 2024 (0 in 5+ unit buildings).
• Wayne County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $18k (37%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (5.8% appreciation + 3.0% rent growth), your $9k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• It's been on market 244 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1910 — 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 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?
• Crime grade is D 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?
• 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.