2543 Mary Ave

Jennings, MO 63136

$480,000B+

1 bd · 1.0 ba · 8,160 sqft · Built 1965 · MultiFamily · Pending · 72 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $15,169/mo
• Mortgage (P&I): −$2,517
• Tax + insurance: −$586
• HOA: −$0
• Vac / Maint / Mgmt: −$3,185
• Net cashflow: $8,880/mo
• Annual: $106,562/yr
• Cap rate: 28.49%
• Cash-on-cash: 79.29%
• DSCR: 4.53
• 1% rule: 3.16%
• Cash to close: $134,400

Investor read

• This is a 16 × 1-bed/1.0-bath units multifamily listed at $480k.
• At list price, monthly cash flow is $9k ($107k/yr) — positive. Per door: $555/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($15k rent vs $480k).
• It's been on market 72 days — a 6% lower offer ($451k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $451k (6.0% below list) — sets the bar for market timing.
• In year one you build about $22k of equity ($3k loan paydown + $18k appreciation (3.8% local appreciation)).
• Location reads 67/100 on livability (#208 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, commute A-, housing A-; Watch: crime F, amenities F, employment F.
• Jennings (suburban): math 8% / reading 20% proficiency, ranked #315 of 324 in MO (top 97%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 86% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Northview Elem. (math 3% / reading 20%, grade F, #1,022 of 1,115 statewide, top 92%, 524 students, 100% FRL); Jennings High (math 8% / reading 17%, grade F, #497 of 521 statewide, top 96%, 691 students, 100% FRL).
• Market conditions: Rents rising fast (+5.0%/yr); 372 active listings in the ZIP; lower-income renter base — watch delinquency; 920 units permitted in St. Louis County in 2024 (250 in 5+ unit buildings).
• At projected returns (3.8% appreciation + 5.0% rent growth), your $134k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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 28.5% vs local median 12.2% in Jennings — 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 $15,169/mo this rent would consume 442% of the median local household income ($41k/yr) (locally 3085% 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 72 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 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• Schools are D-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 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?