508 W Mose Rager Blvd

Drakesboro, KY 42337

$184,900D-

4 bd · 2.0 ba · 1,944 sqft · Built 1960 · SingleFamily · Pending · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,644/mo
• Mortgage (P&I): −$970
• Tax + insurance: −$308
• HOA: −$0
• Vac / Maint / Mgmt: −$345
• Net cashflow: $21/mo
• Annual: $249/yr
• Cap rate: 6.43%
• Cash-on-cash: 0.48%
• DSCR: 1.02
• 1% rule: 0.89%
• Cash to close: $51,772

Investor read

• This is a 4-bed/2.0-bath single-family listed at $185k.
• At list price, monthly cash flow is $21 ($249/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $164k (11.1% below list).
• It's been on market 24 days — a 2% lower offer ($182k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $164k (11.1% 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 58/100 on livability (#434 in KY) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing B+; Watch: employment C-, amenities F, commute F.
• Muhlenberg County (rural): math 24% / reading 37% proficiency, ranked #104 of 165 in KY (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Muhlenberg South Elementary (math 15% / reading 33%, grade F, #512 of 676 statewide, top 76%, 564 students, 65% FRL); Muhlenberg South Middle School (math 34% / reading 40%, grade F, #80 of 217 statewide, top 41%, 420 students, 60% FRL); Muhlenberg County High School (math 24% / reading 32%, grade F, #151 of 254 statewide, top 61%, 1,146 students, 53% FRL).
• Market conditions: 14 active listings in the ZIP; 5 units permitted in Muhlenberg County in 2024 (0 in 5+ unit buildings).
• Muhlenberg County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts; this cycle's ask is 9% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $90k; list at $185k implies a 105% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major flood risk; moderate wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.
• 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.