37 Burnett St

Williamsburg, KY 40769

$88,750B-

3 bd · 2.0 ba · 1,120 sqft · Built 2004 · SingleFamily · Pending · 135 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $962/mo
• Mortgage (P&I): −$465
• Tax + insurance: −$148
• HOA: −$0
• Vac / Maint / Mgmt: −$202
• Net cashflow: $147/mo
• Annual: $1,760/yr
• Cap rate: 8.28%
• Cash-on-cash: 7.08%
• DSCR: 1.32
• 1% rule: 1.08%
• Cash to close: $24,850

Investor read

• This is a 3-bed/2.0-bath single-family listed at $89k.
• At list price, monthly cash flow is $147 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($962 rent vs $89k).
• It's been on market 135 days — a 12% lower offer ($78k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $78k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-0.7%/yr); year-one equity from $614 of loan paydown is wiped out by about $657 of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#168 in KY) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing B+; Watch: amenities F, commute F, employment F.
• Williamsburg Independent (town): math 19% / reading 38% proficiency, ranked #126 of 165 in KY (top 76%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 95 active listings in the ZIP; 65 units permitted in Whitley County in 2024 (0 in 5+ unit buildings).
• Whitley County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts; this cycle's ask has dropped $11k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $18k; list at $89k implies a 393% gain — meaningful room to come down on a strong offer.
• At projected returns (-0.7% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~9 years — after that, you're playing with house money.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.3% vs local median 2.9% in Williamsburg — 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 135 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.
• 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.