Pinnacle (Pin Oak) Plan

O'Fallon, MO 63368

$111,995F

5 bd · 3.0 ba · 2,027 sqft · Built — · SingleFamily · Active · 323 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,971/mo
• Mortgage (P&I): −$1,722
• Tax + insurance: −$547
• HOA: −$630
• Vac / Maint / Mgmt: −$624
• Net cashflow: $-552/mo
• Annual: $-6,629/yr
• Cap rate: 4.27%
• Cash-on-cash: -7.21%
• DSCR: 0.68
• 1% rule: 0.90%
• Cash to close: $91,945

Investor read

• This is a 5-bed/3.0-bath single-family listed at $112k. Condition is rated good.
• At list price, monthly cash flow is $-552 ($-7k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $112k).
• It's been on market 323 days — a 12% lower offer ($99k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $99k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Wentzville R-IV (suburban): math 44% / reading 52% proficiency, ranked #32 of 324 in MO (top 10%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 18% free/reduced lunch — higher-income household profile.
• Watch-outs: property tax is 4.4% of price; HOA is 21% of rent.
• Market conditions: Rents rising (+1.6%/yr); 374 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 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.
• Cap rate 4.3% vs local median 3.2% in O'Fallon — 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

• 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 323 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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?
• 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.
• 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.