206 S Madison Ave

Knob Noster, MO 65336

$1C-

2 bd · 1.0 ba · 1,072 sqft · Built 1960 · Other · Active · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,172/mo
• Mortgage (P&I): −$0
• Tax + insurance: −$0
• HOA: −$0
• Vac / Maint / Mgmt: −$246
• Net cashflow: $926/mo
• Annual: $11,114/yr
• Cap rate: 1111452.16%
• Cash-on-cash: 3969449.53%
• DSCR: 176619.17
• 1% rule: 117242.00%
• Cash to close: $0

Investor read

• This is a 2-bed/1.0-bath other listed at $1.
• At list price, monthly cash flow is $926 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $1).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Location reads 71/100 on livability (#104 in MO) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety C-, employment D+, amenities F.
• Knob Noster R-VIII (town): math 46% / reading 52% proficiency, ranked #47 of 324 in MO (top 14%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 45 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 80 units permitted in Johnson County in 2024 (27 in 5+ unit buildings).
• Johnson County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 9 sale attempts since 23y 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.
• At projected returns (3.6% appreciation + 3.0% rent growth), your $0 cash investment doubles in ~1 year — after that, you're playing with house money.
• Cap rate 1111452.2% vs local median 4.0% in Knob Noster — 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

• Built in 1960 — 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.
• 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.