701-703 W 17th St

Newton, KS 67114

$220,000D

6 bd · 2.0 ba · 1,920 sqft · Built 1979 · MultiFamily · Active · 44 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,980/mo
• Mortgage (P&I): −$1,154
• Tax + insurance: −$391
• HOA: −$0
• Vac / Maint / Mgmt: −$416
• Net cashflow: $19/mo
• Annual: $229/yr
• Cap rate: 6.40%
• Cash-on-cash: 0.37%
• DSCR: 1.02
• 1% rule: 0.90%
• Cash to close: $61,600

Investor read

• This is a 2 × 3-bed/2-bath units multifamily listed at $220k.
• At list price, monthly cash flow is $19 ($229/yr) — positive. Per door: $10/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 $198k (10.0% below list).
• It's been on market 44 days — a 3% lower offer ($213k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $198k (10.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#282 in KS) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety B+; Watch: crime F, amenities F, commute F.
• Newton (town): math 17% / reading 30% proficiency, ranked #141 of 169 in KS (top 83%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Northridge Elementary (math 32% / reading 42%, grade F, #358 of 684 statewide, top 56%, 287 students, 53% FRL); Chisholm Middle School (math 14% / reading 25%, grade F, #152 of 219 statewide, top 72%, 489 students, 58% FRL); Newton Sr High (math 11% / reading 26%, grade F, #232 of 327 statewide, top 71%, 956 students, 51% FRL).
• Market conditions: Rents rising fast (+18.1%/yr); 131 active listings in the ZIP; 148 units permitted in Harvey County in 2024 (13 in 5+ unit buildings).
• 4 sale attempts since 20y ago; this cycle's ask has dropped $40k (15%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $107k; list at $220k implies a 106% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 34% of the median local income ($70k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 44 days. Have you received any prior offers? Is the seller open to a 10% concession, seller financing, or rate buy-down credit?
• 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?
• Built in 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• Crime grade is F 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?