34 Sugar Grove Ct #7

St. Peters, MO 63376

$45,000B

2 bd · 1.0 ba · 848 sqft · Built 1989 · Condo · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,694/mo
• Mortgage (P&I): −$236
• Tax + insurance: −$180
• HOA: −$310
• Vac / Maint / Mgmt: −$356
• Net cashflow: $613/mo
• Annual: $7,356/yr
• Cap rate: 22.64%
• Cash-on-cash: 58.38%
• DSCR: 3.60
• 1% rule: 3.77%
• Cash to close: $12,600

Investor read

• This is a 2-bed/1.0-bath condo listed at $45k.
• At list price, monthly cash flow is $613 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $45k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $311 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Francis Howell R-III (suburban): math 53% / reading 63% proficiency, ranked #11 of 324 in MO (top 3%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Becky-David Elem. (math 62% / reading 71%, grade B+, #57 of 1,115 statewide, top 5%, 849 students, 13% FRL); Hollenbeck Middle (math 56% / reading 55%, grade B-, #42 of 391 statewide, top 11%, 753 students, 26% FRL); Francis Howell North High (math 40% / reading 55%, grade D, #154 of 521 statewide, top 29%, 1,679 students, 19% FRL) — zoned schools at 19% FRL track the district average.
• Watch-outs: property tax is 4.3% of price.
• Market conditions: Rents rising (+2.7%/yr); 297 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 2,021 units permitted in St. Charles County in 2024 (568 in 5+ unit buildings).
• St. Charles County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 2.7% rent growth), your $13k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 22.6% vs local median 4.2% in St. Peters — 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

• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.