10559 E 46th Ter

Kansas City, MO 64133

$170,000D

2 bd · 2.5 ba · 1,278 sqft · Built 2006 · Townhouse · Active · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,552/mo
• Mortgage (P&I): −$891
• Tax + insurance: −$287
• HOA: −$67
• Vac / Maint / Mgmt: −$326
• Net cashflow: $-20/mo
• Annual: $-236/yr
• Cap rate: 6.15%
• Cash-on-cash: -0.49%
• DSCR: 0.98
• 1% rule: 0.91%
• Cash to close: $47,600

Investor read

• This is a 2-bed/2.5-bath townhouse listed at $170k.
• At list price, monthly cash flow is $-20 ($-236/yr) — negative.
• To cash-flow at today's rent, offer at most $167k (2.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $155k (8.7% below list).
• It's been on market 25 days — a 2% lower offer ($167k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $155k (8.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k 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.
• Raytown C-2 (suburban): math 12% / reading 28% proficiency, ranked #302 of 324 in MO (top 93%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Little Blue Elementary (math 12% / reading 27%, grade F, #941 of 1,115 statewide, top 86%, 373 students, 65% FRL); Raytown Middle (math 11% / reading 25%, grade F, #349 of 391 statewide, top 89%, 731 students, 73% FRL); Raytown Sr. High (math 7% / reading 29%, grade F, #482 of 521 statewide, top 92%, 1,365 students, 65% FRL).
• Market conditions: Rents rising (+1.3%/yr); 208 active listings in the ZIP; 16 comparable units currently listed for rent nearby; rentals leasing fast (median 10d on market — plan ~1-2 weeks tenant-placement turnaround); 4,002 units permitted in Jackson County in 2024 (2,271 in 5+ unit buildings).
• Jackson County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 20y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Cap rate 6.2% vs local median 3.9% in Kansas City — 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

• 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• 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.