6242 North Dr

University City, MO 63130

$589,000C-

8 bd · 4.0 ba · 3,852 sqft · Built 1926 · MultiFamily · Active · 54 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,525/mo
• Mortgage (P&I): −$3,089
• Tax + insurance: −$785
• HOA: −$0
• Vac / Maint / Mgmt: −$1,160
• Net cashflow: $491/mo
• Annual: $5,887/yr
• Cap rate: 7.41%
• Cash-on-cash: 3.97%
• DSCR: 1.18
• 1% rule: 0.94%
• Cash to close: $164,920

Investor read

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $589k.
• At list price, monthly cash flow is $491 ($6k/yr) — positive. Per door: $123/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $552k (6.2% below list).
• It's been on market 54 days — a 3% lower offer ($571k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $552k (6.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $18k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#84 in MO) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, cost of living B; Watch: amenities D-, commute D-, health & safety F.
• University City (suburban): math 15% / reading 26% proficiency, ranked #297 of 324 in MO (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Pershing Elem. (math 8% / reading 12%, grade F, #1,037 of 1,115 statewide, top 94%, 265 students, 100% FRL); Brittany Woods (math 15% / reading 20%, grade F, #350 of 391 statewide, top 90%, 532 students, 100% FRL); University City Sr. High (math 5% / reading 52%, grade F, #409 of 521 statewide, top 79%, 726 students, 100% FRL) — zoned schools average 100% FRL vs 67% district-wide (32 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $56/mo; built in 1926 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.6%/yr); 163 active listings in the ZIP; solid renter incomes; 920 units permitted in St. Louis County in 2024 (250 in 5+ unit buildings).
• Current owner paid $318k; list at $589k implies a 85% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe flood risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.4% vs local median 4.4% in University 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.
• At $5,525/mo this rent would consume 77% of the median local household income ($86k/yr) (locally 893% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 54 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1926 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.