206 E Main St

Highland, KS 66035

$135,000D+

2 bd · 1.0 ba · 1,207 sqft · Built 1926 · SingleFamily · Active · 180 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,028/mo
• Mortgage (P&I): −$708
• Tax + insurance: −$225
• HOA: −$0
• Vac / Maint / Mgmt: −$216
• Net cashflow: $-121/mo
• Annual: $-1,448/yr
• Cap rate: 5.22%
• Cash-on-cash: -3.83%
• DSCR: 0.83
• 1% rule: 0.76%
• Cash to close: $37,800

Investor read

• This is a 2-bed/1.0-bath single-family listed at $135k.
• At list price, monthly cash flow is $-121 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $118k (12.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $103k (23.8% below list).
• It's been on market 180 days — a 12% lower offer ($119k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $103k (23.8% below list) — sets the bar for 1% rule.
• In year one you build about $11k of equity ($933 loan paydown + $10k appreciation (7.5% local appreciation)).
• Location reads 74/100 on livability (#78 in KS, #4,496 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Doniphan West Schools (rural): math 20% / reading 35% proficiency, ranked #194 of 280 in KS (top 69%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Doniphan West Elementary School (math 32% / reading 47%, grade F, #321 of 684 statewide, top 52%, 222 students, 45% FRL); Doniphan West Jr/Sr High School (math 22% / reading 34%, grade F, #81 of 327 statewide, top 25%, 152 students, 37% FRL).
• Watch-outs: built in 1926 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 8 active listings in the ZIP; 2 units permitted in Doniphan County in 2024 (0 in 5+ unit buildings).
• Doniphan County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts; this cycle's ask has dropped $12k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $46k; list at $135k implies a 191% gain — meaningful room to come down on a strong offer.
• By year 4, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 180 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1926 — 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?
• 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.