The Greystone Plan

Kansas City, MO 64152

$525,000F

4 bd · 3.0 ba · 2,319 sqft · Built — · SingleFamily · Active · 284 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,360/mo
• Mortgage (P&I): −$3,366
• Tax + insurance: −$1,070
• HOA: −$46
• Vac / Maint / Mgmt: −$496
• Net cashflow: $-2,617/mo
• Annual: $-31,401/yr
• Cap rate: 1.40%
• Cash-on-cash: -17.47%
• DSCR: 0.22
• 1% rule: 0.37%
• Cash to close: $179,697

Investor read

• This is a 4-bed/3.0-bath single-family listed at $525k.
• At list price, monthly cash flow is $-3k ($-31k/yr) — negative.
• To cash-flow at today's rent, offer at most $263k (49.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $236k (55.0% below list).
• It's been on market 284 days — a 12% lower offer ($462k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $236k (55.0% below list) — sets the bar for 1% rule.
• In year one you build about $69k of equity ($4k loan paydown + $64k appreciation (10.0% local appreciation)).
• 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: crime F.
• Park Hill (urban): math 47% / reading 54% proficiency, ranked #26 of 324 in MO (top 8%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Alfred L. Renner Elem. (math 31% / reading 43%, grade F, #611 of 1,115 statewide, top 59%, 427 students, 36% FRL); Plaza Middle (math 37% / reading 51%, grade D, #121 of 391 statewide, top 32%, 715 students, 30% FRL); Park Hill High (math 70% / reading 71%, grade B+, #9 of 521 statewide, top 2%, 1,857 students, 25% FRL).
• Market conditions: Rents rising fast (+7.0%/yr); 268 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 19d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 234 units permitted in Platte County in 2024 (0 in 5+ unit buildings).
• Platte County population projected at +31% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 2, paydown + projected appreciation supports a ~$110k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 1.4% vs local median 3.9% in Kansas City — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 284 days. Have you received any prior offers? Is the seller open to a 55% 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?
• 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.