406 N Catherine N/A

Cherryvale, KS 67335

$95,000F

2 bd · 2.0 ba · 892 sqft · Built 2016 · SingleFamily · Pending · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $846/mo
• Mortgage (P&I): −$498
• Tax + insurance: −$272
• HOA: −$0
• Vac / Maint / Mgmt: −$178
• Net cashflow: $-102/mo
• Annual: $-1,227/yr
• Cap rate: 5.00%
• Cash-on-cash: -4.61%
• DSCR: 0.79
• 1% rule: 0.89%
• Cash to close: $26,600

Investor read

• This is a 2-bed/2.0-bath single-family listed at $95k.
• At list price, monthly cash flow is $-102 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $77k (19.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $85k (10.9% below list).
• It's been on market 37 days — a 3% lower offer ($92k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $77k (19.0% below list) — sets the bar for cash-flow.
• In year one you build about $5k of equity ($657 loan paydown + $4k appreciation (4.3% local appreciation)).
• Location reads 68/100 on livability (#214 in KS) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime D+, schools F, amenities F.
• Cherryvale (rural): math 24% / reading 35% proficiency, ranked #108 of 169 in KS (top 64%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: property tax is 2.9% of price.
• Market conditions: 16 active listings in the ZIP; 10 units permitted in Montgomery County in 2024 (0 in 5+ unit buildings).
• Montgomery County population projected at -28% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 7y 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.
• By year 7, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 37 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D 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.