1027 Caroline Dr

Washington, MO 63090

$10,500,000B-

None bd · 13225.0 ba · 105,000 sqft · Built 1974 · MultiFamily · Active · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $131,072/mo
• Mortgage (P&I): −$55,063
• Tax + insurance: −$17,500
• HOA: −$0
• Vac / Maint / Mgmt: −$27,525
• Net cashflow: $30,984/mo
• Annual: $371,805/yr
• Cap rate: 9.83%
• Cash-on-cash: 12.65%
• DSCR: 1.56
• 1% rule: 1.25%
• Cash to close: $2,940,000

Investor read

• This is a 115 × 2-bed/1.5-bath units multifamily listed at $10.50M.
• At list price, monthly cash flow is $31k ($372k/yr) — positive. Per door: $269/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($131k rent vs $10.50M).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $73k of loan paydown is wiped out by about $315k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#13 in MO, #1,373 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, cost of living A+, housing A+; Watch: commute F.
• Washington (town): math 41% / reading 55% proficiency, ranked #46 of 324 in MO (top 14%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: South Point Elementary (math 41% / reading 41%, grade F, #520 of 1,115 statewide, top 47%, 407 students, 33% FRL); Washington Middle (math 43% / reading 54%, grade C-, #81 of 391 statewide, top 21%, 551 students, 31% FRL); Washington High School (math 29% / reading 73%, grade D+, #109 of 521 statewide, top 21%, 1,322 students, 20% FRL) — zoned schools at 28% FRL track the district average.
• Market conditions: 203 active listings in the ZIP; 614 units permitted in Franklin County in 2024 (100 in 5+ unit buildings).
• Franklin County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $2.94M cash investment doubles in ~9 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.8% vs local median 2.4% in Washington — 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

• 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 1974 — 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 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?
• 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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.