1710 Lexington Pl

Herculaneum, MO 63048

$250,000B-

3 bd · 3.0 ba · 1,284 sqft · Built 2010 · MultiFamily · Pending · 36 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,495/mo
• Mortgage (P&I): −$1,311
• Tax + insurance: −$256
• HOA: −$250
• Vac / Maint / Mgmt: −$734
• Net cashflow: $944/mo
• Annual: $11,331/yr
• Cap rate: 10.83%
• Cash-on-cash: 16.19%
• DSCR: 1.72
• 1% rule: 1.40%
• Cash to close: $70,000

Investor read

• This is a 3-bed/3.0-bath multifamily listed at $250k.
• At list price, monthly cash flow is $944 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $250k).
• It's been on market 36 days — a 3% lower offer ($242k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $242k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#542 in MO) — a working-class tenant base; expect higher turnover. Strengths: housing A+, cost of living A, crime B+; Watch: amenities F, commute F, health & safety F.
• Festus R-VI (suburban): math 55% / reading 64% proficiency, ranked #16 of 324 in MO (top 5%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Festus Elem. (math 73% / reading 73%, grade A, #16 of 1,115 statewide, top 2%, 1,039 students, 36% FRL); Festus Intermediate (math 57% / reading 65%, grade B+, #17 of 391 statewide, top 5%, 745 students, 40% FRL); Festus Sr. High (math 37% / reading 60%, grade D, #147 of 521 statewide, top 29%, 979 students, 36% FRL) — zoned schools at 37% FRL track the district average.
• Market conditions: 58 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 807 units permitted in Jefferson County in 2024 (104 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $70k cash investment doubles in ~8 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 10.8% vs local median 3.9% in Herculaneum — 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

• It's been on market 36 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.