85 Arrowhead Rd

Eddyville, KY 42038

$250,000B-

3 bd · 2.0 ba · 1,120 sqft · Built 1985 · Other · Active · 241 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,639/mo
• Mortgage (P&I): −$1,311
• Tax + insurance: −$204
• HOA: −$0
• Vac / Maint / Mgmt: −$554
• Net cashflow: $569/mo
• Annual: $6,831/yr
• Cap rate: 9.03%
• Cash-on-cash: 9.76%
• DSCR: 1.43
• 1% rule: 1.06%
• Cash to close: $70,000

Investor read

• This is a 3-bed/2.0-bath other listed at $250k.
• At list price, monthly cash flow is $569 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $250k).
• It's been on market 241 days — a 12% lower offer ($220k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $220k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#174 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A; Watch: amenities F, commute F, employment F.
• Lyon County (rural): math 45% / reading 52% proficiency, ranked #13 of 165 in KY (top 8%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lyon County Elementary School (math 42% / reading 57%, grade D, #100 of 676 statewide, top 16%, 457 students, 58% FRL); Lyon County Middle School (math 51% / reading 54%, grade C+, #16 of 217 statewide, top 7%, 243 students, 51% FRL); Lyon County High School (math 32% / reading 37%, grade F, #76 of 254 statewide, top 34%, 298 students, 46% FRL).
• Market conditions: 118 active listings in the ZIP; 3 units permitted in Lyon County in 2024 (0 in 5+ unit buildings).
• Lyon County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts since 8y ago; this cycle's ask has dropped $50k (17%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.0% vs local median 3.5% in Eddyville — 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.

Questions for listing agent

• It's been on market 241 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.