308 E 7th St Unit 1 & 2 · Lexington-Fayette, KY 40508

$154,900

4 bd · 4.0 ba · 882 sqft · Condo · 75 Days on market

Built 1900 ↓ 9% since listing

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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 +21.4/30.0
• ARV discount +7.5/15.0
• DSCR +6.8/10.0
• 1% rule +5.6/10.0
• Rent growth +5.0/5.0
• Schools +3.4/10.0
• Livability +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Attention investors and house hackers: Updated Downtown Lexington duplex with both units vacant, ready for you to place your own tenants. This investment property features one-bedroom, one-bathroom layout on each side. An excellent opportunity for steady rental income.

Key facts

• 2,526 sq ft lot
• Built 1900
• Listed 75 days

Property features AI

Finance

• Other: Zoned R-2; Lot size about 0.058 acres; Parcel number 11374600

Exterior

• Home design: Duplex/unit property (Unit 1 & 2)
• Construction: Total building area approximately 882
• Exterior features: Lot in Downtown subdivision; Directions: Winchester Rd to 7th St.

Interior

• Bedrooms: Bedrooms info not provided
• Bathrooms: 2 full bathrooms
• Heating & cooling: Natural gas heating; Window unit cooling
• Interior features: Window air conditioning units; Natural gas heating

What this means for you Summary

Snapshot

• This is a 4-bed/4.0-bath condo listed at $155k.

Deal economics

• At list price, monthly cash flow is $231 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $155k).
• Recommended offer: $146k (6.0% below list) — sets the bar for market timing.
• Cap rate 8.1% vs local median 3.8% in Lexington-Fayette — 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: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Fayette County (urban): math 35% / reading 45% proficiency, ranked #27 of 165 in KY (top 16%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Frederick Douglass High School (math 36% / reading 42%, grade F, #51 of 254 statewide, top 21%, 1,667 students, 43% FRL) — zoned schools at 43% FRL track the district average.
• Market conditions: Rents rising fast (+11.8%/yr); 82 active listings in the ZIP; 12 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); lower-income renter base — watch delinquency; 1,036 units permitted in Fayette County in 2024 (542 in 5+ unit buildings).
• At $1,647/mo this rent would consume 67% of the median local household income ($29k/yr) (locally 2644% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Fayette County population projected at +35% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $43k cash investment doubles in ~9 years — after that, you're playing with house money.

Negotiation context

• It's been on market 75 days — a 6% lower offer ($146k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts; this cycle's ask is 15012% above the opening price — seller raised mid-cycle; expect resistance to lowballs.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $145,606 (6.0% below list)

Questions for the listing agent

1. It's been on market 75 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.06% ✓
• Cap rate: 8.08%
• Cash-on-cash: 6.39%
• DSCR: 1.28
• GRM: 7.8

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 8.0% rent growth · sell at horizon

5-year hold

• IRR: -1.0%
• Equity multiple: 0.96×
• Total profit: $-1,659
• Equity at exit: $23,096

10-year hold

• IRR: 13.4%
• Equity multiple: 2.32×
• Total profit: $57,223
• Equity at exit: $13,393

Cash invested: $43,372 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State Kentucky: 83 Strongly Landlord-Friendly · R+16
• County: — inherits STATE
• City: — inherits STATE

7-day pay-or-quit (URLTA cities); generally landlord-friendly.

Methodology + full state rankings →

ZIP-level market 40508

• Rents YoY: 11.8%
• Active inventory: 82
• Price-to-rent: 7.8×

Monthly cashflow live

• Estimated rent: $1,647 high
• Mortgage (P&I): −$812
• Tax est. 1.5%: −$194 /mo · $2,324/yr
• Insurance: −$65
• HOA: −$0
• Vacancy / Maint / Mgmt: −$346
• Net cashflow: $231

Break-even live

Break-even rent $1,355

Max offer price $154,900

Occupancy floor 81%

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: $38,725
• Closing costs: $4,647
• Reserves months: —
• Total cash needed: —

Rent comps 12 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
706 Lancaster Ave Lexington, KY	3.0	3.0	1050	$1,495	$1.42	14d	1	0.06mi
425 Hawkins Ave Lexington, KY	3.0	1.5	1124	$1,570	$1.40	14d	1	0.42mi
222 W Sixth St Lexington, KY	3.0	1.5	1050	$1,150	$1.10	23d	1	0.44mi
115 W Loudon Ave Unit L97 Lexington, KY	3.0	2.0	960	$980	$1.02	23d	1	0.51mi
236 Warnock St Lexington, KY	3.0	1.0	1028	$2,200	$2.14	23d	1	0.67mi
341 Grosvenor Ave #4 Lexington, KY	3.0	3.0	859	$2,600	$3.03	23d	1	1.15mi
341 Grosvenor Ave Unit 1 Lexington, KY	3.0	2.0	700	$2,050	$2.93	23d	1	1.15mi
341 Grosvenor Ave Unit 3 Lexington, KY	3.0	3.0	875	$2,500	$2.86	23d	1	1.15mi
330 Newtown Pike Lexington, KY	1.0–3.0	1.0–2.0	976	$1,377	$1.41	23d	1	1.15mi
302 Owsley Ave Lexington, KY	4.0	1.0	1025	$1,895	$1.85	23d	1	1.20mi
723 Charles Ave Lexington, KY	3.0	1.0	992	$1,300	$1.31	14d	1	1.27mi
832 W High St Unit 1 Lexington, KY	3.0	1.5	900	$1,400	$1.56	23d	1	1.46mi

HOA detail condo

• Monthly dues: $0 · $0/yr
• Assessments: None detected in remarks — confirm with the listing agent.

Listing history 12 events

1. 2026-05-31
   days on market $154,900 Active 75 DOM
2. 2026-05-05
   historical $775
3. 2026-05-05
   price $154,900
4. 2026-04-21
   price $775
5. 2026-04-14
   price $149,900
6. 2026-04-12
   price $795
7. 2026-04-08
   price $154,900
8. 2026-03-31
   price $159,900
9. 2026-03-30
   price $995
10. 2026-03-24
    price $164,900
11. 2026-03-18
    listed $1,025
12. 2026-03-17
    listed $169,900 Active

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

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 4/10 Moderate 7 d/yr ≥101°F today · 19 d/yr by 30 yrs out
• 💨 Wind 2/10 Low 100% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 0 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $19,769
• − Mortgage interest: −$8,677
• − Property taxes: −$2,324
• − Insurance: −$774
• − Repairs & maintenance: −$1,582
• − Management: −$1,582
• − Depreciation: −$4,506
• Taxable income: $325
• Est. tax owed @ 24.0%: −$78
• After-tax cash flow: $2,694/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: Fayette County
• NCES district ID: 2101860
• Math proficiency: 35% ▼ -16.00%
• Reading proficiency: 45% ▼ -13.00%
• Median HH income: $49,245
• Composite: 34.38/100
• National rank: #5211
• State rank: #27 of 165 in KY

Livability — Lexington-Fayette

No livability data for this city. (Only ~50 U.S. cities are tracked.)

Census & demographics

• Census place: Lexington-Fayette, KY
• County: Fayette County · 317,143 people
• City population: 321,882
• Metro: Lexington-Fayette, KY
• Population (ZIP): 23,756
• Household income: $29,440
• Rent vs Own: 70.5% rent · 29.5% own
• Severe rent burden: 2644.0

Population outlook (Fayette County) Hauer SSP2

• Today (2025): 363,454 people
• By 2030: 388,270 · +6.8%
• By 2040: 438,688 · +20.7%
• By 2050: 490,667 · +35.0%
• By 2075: 625,394 · +72.1%
• By 2100: 721,354 · +98.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.58)
• Race & ethnicity: White 60% Black 22% Hispanic / Latino 9% Two or more races 7% Asian 3%
• Hispanic origin (detail): Mexican 5%
• Common ancestry: Serbian 2% Italian 2% Lithuanian 2%
• Foreign-born: 9% · Canada, China
• Languages at home: 87% English-only · Spanish 8% Chinese 1% Other Indo-European 1%

Political lean MEDSL · Fayette

• 2024 margin: D (+18.1) · D 58.0% · R 39.9% · Other 2.1%
• 2008→2024 swing: +13.3pp toward D · 2008: 4.8pp · 2024: 18.1pp
• All cycles: 2024: D+18.1 2020: D+20.8 2016: D+9.5 2012: D+1.0 2008: D+4.8

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -251.04%
• Current HPI: 204.3994
• Rent YoY: ▲ 11.83%
• Metro: Lexington-Fayette, KY
• State GDP YoY: ▲ 1.81%
• F500 in state: 4

Industry mix (Fortune 500 HQ in KY)

Industry	F500 HQs	Revenue
▸Healthcare	1	$118B
▸Food / Beverage	1	$7B

Price history

-8.8% since first listed

11 events — show timeline

• 2026-05-05 Rental Removed $775 LBARMLS
• 2026-05-05 Price Changed $154,900 ImagineMLS
• 2026-04-21 Price Changed $775 LBARMLS
• 2026-04-14 Price Changed $149,900 ImagineMLS
• 2026-04-12 Price Changed $795 LBARMLS
• 2026-04-08 Price Changed $154,900 ImagineMLS
• 2026-03-31 Price Changed $159,900 ImagineMLS
• 2026-03-30 Price Changed $995 LBARMLS
• 2026-03-24 Price Changed $164,900 ImagineMLS
• 2026-03-18 Listed for Rent $1,025 LBARMLS
• 2026-03-17 Listed $169,900 ImagineMLS