6 bd · 5.0 ba ·
2,896 sqft ·
Built 1987
· MultiFamily
· Pending
· 1 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$3,278/mo
Mortgage (P&I)
−$2,071
Tax + insurance
−$352
HOA
−$0
Vac / Maint / Mgmt
−$688
Net cashflow
$166/mo
Annual
$1,994/yr
Cap rate
6.80%
Cash-on-cash
1.80%
DSCR
1.08
1% rule
0.83%
Cash to close
$110,600
Investor read
This is a 2 × 3-bed/?-bath units multifamily listed at $395k.
At list price, monthly cash flow is $166 ($2k/yr) — positive. Per door: $83/mo.
The deal already cash-flows at list — no discount required.
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $328k (17.0% below list).
Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
Recommended offer: $328k (17.0% below list) — sets the bar for 1% rule.
Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
Location reads 83/100 on livability (#9 in MO, #862 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime D+.
Columbia 93 (urban): math 30% / reading 43% proficiency, ranked #194 of 324 in MO (top 60%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Zoned schools: New Haven Elem. (math 12% / reading 27%, grade F, #941 of 1,115 statewide, top 86%, 237 students, 61% FRL); Ann Hawkins Gentry Middle (math 40% / reading 47%, grade D, #127 of 391 statewide, top 34%, 719 students, 31% FRL); Rock Bridge Sr. High (math 39% / reading 68%, grade C-, #83 of 521 statewide, top 16%, 2,032 students, 18% FRL) — zoned schools at 37% FRL track the district average.
Market conditions: Rents rising fast (+10.3%/yr); 355 active listings in the ZIP; 1,303 units permitted in Boone County in 2024 (549 in 5+ unit buildings).
Boone County population projected at +36% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
3 sale attempts since 3y 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.
Cap rate 6.8% vs local median 2.9% in Columbia — 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 $3,278/mo this rent would consume 82% of the median local household income ($48k/yr) (locally 4323% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.
Questions for listing agent
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?
Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
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.
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.
CashFlowRE · CFR-KMRD79054WJHT0
· Data 4 weeks agocashflowre.app · 2026-05-29