1341 Montevale Ct

Fenton, MO 63026

$398,500D+

4 bd · 2.5 ba · 2,814 sqft · Built 1991 · SingleFamily · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,312/mo
• Mortgage (P&I): −$2,090
• Tax + insurance: −$603
• HOA: −$10
• Vac / Maint / Mgmt: −$696
• Net cashflow: $-86/mo
• Annual: $-1,037/yr
• Cap rate: 6.03%
• Cash-on-cash: -0.93%
• DSCR: 0.96
• 1% rule: 0.83%
• Cash to close: $111,580

Investor read

• This is a 4-bed/2.5-bath single-family listed at $398k.
• At list price, monthly cash flow is $-86 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $383k (3.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $331k (16.9% below list).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $331k (16.9% 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 74/100 on livability (#65 in MO, #4,484 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Lindbergh Schools (suburban): math 41% / reading 55% proficiency, ranked #38 of 324 in MO (top 12%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 13% free/reduced lunch — higher-income household profile.
• Zoned schools: Concord Elem. School (math 43% / reading 62%, grade C-, #226 of 1,115 statewide, top 21%, 552 students, 10% FRL); Truman Middle School (math 36% / reading 49%, grade D-, #140 of 391 statewide, top 38%, 736 students, 15% FRL); Lindbergh Sr. High (math 56% / reading 70%, grade B-, #26 of 521 statewide, top 5%, 2,235 students, 12% FRL) — zoned schools at 12% FRL track the district average.
• Market conditions: Rents rising fast (+7.7%/yr); 150 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 920 units permitted in St. Louis County in 2024 (250 in 5+ unit buildings).
• Current owner paid $179k; list at $398k implies a 122% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.0% vs local median 3.3% in Fenton — 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.
• This rent runs 41% of the median local income ($98k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.