Riverside Plan

Kansas City, MO 64157

$431,200F

5 bd · 3.0 ba · 2,538 sqft · Built — · SingleFamily · Active · 196 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,091/mo
• Mortgage (P&I): −$2,564
• Tax + insurance: −$815
• HOA: −$0
• Vac / Maint / Mgmt: −$649
• Net cashflow: $-937/mo
• Annual: $-11,244/yr
• Cap rate: 3.99%
• Cash-on-cash: -8.21%
• DSCR: 0.63
• 1% rule: 0.63%
• Cash to close: $136,905

Investor read

• This is a 5-bed/3.0-bath single-family listed at $431k. Condition is rated good.
• At list price, monthly cash flow is $-937 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $353k (18.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $309k (28.3% below list).
• It's been on market 196 days — a 12% lower offer ($379k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $309k (28.3% 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 $15k 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: schools C-, 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.
• Market conditions: Rents rising fast (+9.5%/yr); 240 active listings in the ZIP; 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.

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 196 days. Have you received any prior offers? Is the seller open to a 28% 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.