630 K Rd

Hugoton, KS 67951

$160,000D

5 bd · 3.0 ba · 1,498 sqft · Built 1930 · SingleFamily · Active · 594 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,276/mo
• Mortgage (P&I): −$839
• Tax + insurance: −$105
• HOA: −$0
• Vac / Maint / Mgmt: −$268
• Net cashflow: $64/mo
• Annual: $768/yr
• Cap rate: 6.77%
• Cash-on-cash: 1.71%
• DSCR: 1.08
• 1% rule: 0.80%
• Cash to close: $44,800

Investor read

• This is a 5-bed/3.0-bath single-family listed at $160k.
• At list price, monthly cash flow is $64 ($768/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $128k (20.3% below list).
• It's been on market 594 days — a 12% lower offer ($141k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $128k (20.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#95 in KS) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Hugoton Public Schools (town): math 25% / reading 29% proficiency, ranked #119 of 169 in KS (top 70%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Hugoton Elem (math 38% / reading 41%, grade F, #321 of 684 statewide, top 52%, 532 students, 65% FRL); Hugoton Middle (math 8% / reading 12%, grade F, #203 of 219 statewide, top 93%, 154 students, 60% FRL); Hugoton High (math 12% / reading 22%, grade F, #235 of 327 statewide, top 74%, 327 students, 52% FRL).
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 21 active listings in the ZIP; 9 units permitted in Stevens County in 2024 (0 in 5+ unit buildings).
• Stevens County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 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.
• Current owner paid $22k; list at $160k implies a 627% gain — meaningful room to come down on a strong offer.

Questions for listing agent

• It's been on market 594 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• Built in 1930 — 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 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?
• 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.