1604-1606 High Quest Cir

Columbia, MO 65202

$280,000C+

6 bd · 4.0 ba · 2,256 sqft · Built 1997 · MultiFamily · Pending · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,158/mo
• Mortgage (P&I): −$1,468
• Tax + insurance: −$261
• HOA: −$0
• Vac / Maint / Mgmt: −$663
• Net cashflow: $766/mo
• Annual: $9,188/yr
• Cap rate: 9.57%
• Cash-on-cash: 11.72%
• DSCR: 1.52
• 1% rule: 1.13%
• Cash to close: $78,400

Investor read

• This is a 2 × 3-bed/2-bath units multifamily listed at $280k.
• At list price, monthly cash flow is $766 ($9k/yr) — positive. Per door: $383/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $280k).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• 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 83/100 on livability (#9 in MO, #862 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime D+.
• Columbia 93 (urban): math 30% / reading 43% proficiency, ranked #194 of 324 in MO (top 60%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Derby Ridge Elem. (math 13% / reading 24%, grade F, #960 of 1,115 statewide, top 86%, 395 students, 70% FRL); John B. Lange Middle (math 13% / reading 22%, grade F, #350 of 391 statewide, top 90%, 529 students, 65% FRL); Muriel W. Battle High School (math 7% / reading 47%, grade F, #420 of 521 statewide, top 82%, 1,581 students, 48% FRL) — zoned schools average 61% FRL vs 35% district-wide (26 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 21% at this address vs 36% district-wide (-16 pts) — the specific schools serving this property underperform the Columbia 93 average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising fast (+6.0%/yr); 351 active listings in the ZIP; 1,303 units permitted in Boone County in 2024 (549 in 5+ unit buildings).
• Boone County population projected at +36% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 6.0% rent growth), your $78k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 9.6% vs local median 2.9% in Columbia — 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.
• At $3,158/mo this rent would consume 52% of the median local household income ($72k/yr) (locally 1326% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.
• 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.