543 Westernmill Dr

Chesterfield, MO 63017

$500,000D

5 bd · 3.0 ba · 2,638 sqft · Built 1970 · SingleFamily · Active · 22 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,504/mo
• Mortgage (P&I): −$2,622
• Tax + insurance: −$583
• HOA: −$0
• Vac / Maint / Mgmt: −$736
• Net cashflow: $-437/mo
• Annual: $-5,245/yr
• Cap rate: 5.24%
• Cash-on-cash: -3.75%
• DSCR: 0.83
• 1% rule: 0.70%
• Cash to close: $140,000

Investor read

• This is a 5-bed/3.0-bath single-family listed at $500k.
• At list price, monthly cash flow is $-437 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $423k (15.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $350k (29.9% below list).
• It's been on market 22 days — a 2% lower offer ($492k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $350k (29.9% 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 71/100 on livability (#110 in MO) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A; Watch: amenities F, commute F, cost of living D-.
• Parkway C-2 (suburban): math 49% / reading 62% proficiency, ranked #18 of 324 in MO (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Green Trails Elem. (math 57% / reading 67%, grade B, #98 of 1,115 statewide, top 10%, 379 students, 8% FRL); Central High (math 53% / reading 73%, grade B-, #26 of 521 statewide, top 5%, 1,244 students, 13% FRL) — zoned schools at 11% FRL track the district average.
• Market conditions: Rents rising fast (+5.5%/yr); 227 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 920 units permitted in St. Louis County in 2024 (250 in 5+ unit buildings).
• 2 sale attempts 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.
• Cap rate 5.2% vs local median 2.9% in Chesterfield — 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.
• This rent runs 33% of the median local income ($127k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• Built in 1970 — 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.
• Schools are A-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?
• 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.
• 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.