873 SE Brookside Dr

Topeka, KS 66607

$129,900D-

3 bd · 1.0 ba · 1,420 sqft · Built 1970 · SingleFamily · Pending · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $980/mo
• Mortgage (P&I): −$681
• Tax + insurance: −$152
• HOA: −$0
• Vac / Maint / Mgmt: −$206
• Net cashflow: $-59/mo
• Annual: $-714/yr
• Cap rate: 5.74%
• Cash-on-cash: -1.96%
• DSCR: 0.91
• 1% rule: 0.75%
• Cash to close: $36,372

Investor read

• This is a 3-bed/1.0-bath single-family listed at $130k.
• At list price, monthly cash flow is $-59 ($-714/yr) — negative.
• To cash-flow at today's rent, offer at most $119k (8.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $98k (24.6% below list).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $98k (24.6% below list) — sets the bar for 1% rule.
• In year one you build about $573 of equity ($898 loan paydown + $-325 appreciation (-0.2% local appreciation)).
• Location reads 69/100 on livability (#195 in KS) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment C-, crime F, commute F.
• Shawnee Heights (rural): math 27% / reading 30% proficiency, ranked #90 of 169 in KS (top 53%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Tecumseh North Elem (math 24% / reading 29%, grade F, #532 of 684 statewide, top 78%, 470 students, 53% FRL); Shawnee Heights Middle (math 22% / reading 23%, grade F, #130 of 219 statewide, top 61%, 538 students, 36% FRL); Shawnee Heights High (math 21% / reading 28%, grade F, #105 of 327 statewide, top 49%, 1,293 students, 30% FRL).
• Market conditions: 22 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 219 units permitted in Shawnee County in 2024 (25 in 5+ unit buildings).
• Shawnee County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $41k; list at $130k implies a 220% gain — meaningful room to come down on a strong offer.
• Cap rate 5.7% vs local median 4.3% in Topeka — 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?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.