Heather Plan

Kansas City, MO 64157

$380,800F

3 bd · 2.0 ba · 1,518 sqft · Built — · SingleFamily · Active · 294 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,391/mo
• Mortgage (P&I): −$2,325
• Tax + insurance: −$739
• HOA: −$0
• Vac / Maint / Mgmt: −$502
• Net cashflow: $-1,175/mo
• Annual: $-14,101/yr
• Cap rate: 3.11%
• Cash-on-cash: -11.36%
• DSCR: 0.49
• 1% rule: 0.54%
• Cash to close: $124,146

Investor read

• This is a 3-bed/2.0-bath single-family listed at $381k. Condition is rated good.
• At list price, monthly cash flow is $-1k ($-14k/yr) — negative.
• To cash-flow at today's rent, offer at most $273k (28.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $239k (37.2% below list).
• It's been on market 294 days — a 12% lower offer ($335k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $239k (37.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#28 in MO, #2,671 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime F.
• Liberty 53 (suburban): math 41% / reading 59% proficiency, ranked #24 of 324 in MO (top 7%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Warren Hills Elem. (math 48% / reading 60%, grade C, #215 of 1,115 statewide, top 20%, 603 students, 20% FRL); South Valley Middle (math 33% / reading 53%, grade D-, #134 of 391 statewide, top 35%, 791 students, 18% FRL); Liberty North High School (math 25% / reading 75%, grade D+, #116 of 521 statewide, top 22%, 2,326 students, 18% FRL) — zoned schools at 19% FRL track the district average.
• Market conditions: Rents rising fast (+9.5%/yr); 340 active listings in the ZIP; 19 comparable units currently listed for rent nearby; rentals leasing fast (median 10d on market — plan ~1-2 weeks tenant-placement turnaround); 47% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 341 units permitted in Clay County in 2024 (40 in 5+ unit buildings).
• Clay County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 3.1% vs local median 3.9% in Kansas City — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 294 days. Have you received any prior offers? Is the seller open to a 37% 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.
• 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?
• 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.