7350 N Hanley Rd

Hazelwood, MO 63033

$5,000,000A-

None bd · None ba · — sqft · Built 1970 · MultiFamily · Active · 267 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $191,882/mo
• Mortgage (P&I): −$26,221
• Tax + insurance: −$8,333
• HOA: −$0
• Vac / Maint / Mgmt: −$40,295
• Net cashflow: $117,033/mo
• Annual: $1,404,395/yr
• Cap rate: 34.38%
• Cash-on-cash: 100.31%
• DSCR: 5.46
• 1% rule: 3.84%
• Cash to close: $1,400,000

Investor read

• This is a 160 × 1-bed/1-bath units multifamily listed at $5.00M. Condition is rated good.
• At list price, monthly cash flow is $117k ($1.40M/yr) — positive. Per door: $731/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($192k rent vs $5.00M).
• It's been on market 267 days — a 12% lower offer ($4.40M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $4.40M (12.0% below list) — sets the bar for market timing.
• In year one you build about $535k of equity ($35k loan paydown + $500k appreciation (10.0% local appreciation)).
• Location reads 62/100 on livability (#395 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: schools D-, crime F, amenities F.
• Hazelwood (suburban): math 11% / reading 26% proficiency, ranked #306 of 324 in MO (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: Rents rising fast (+7.5%/yr); 218 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 920 units permitted in St. Louis County in 2024 (250 in 5+ unit buildings).
• At projected returns (10.0% appreciation + 7.5% rent growth), your $1.40M cash investment doubles in ~1 year — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$859k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 34.4% vs local median 7.2% in Hazelwood — 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 $191,882/mo this rent would consume 3448% of the median local household income ($67k/yr) (locally 1429% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 267 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• Crime grade is F 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?

Repairs flagged (vision-AI assessment)

• Major: kitchen cabinets — cabinets removed, likely for renovation
• Major: bathroom fixtures — tub and sink removed, likely for renovation