505 Shawnee St

Hiawatha, KS 66434

$127,000C-

4 bd · 2.5 ba · 1,568 sqft · Built 1920 · SingleFamily · Active · 327 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,166/mo
• Mortgage (P&I): −$666
• Tax + insurance: −$196
• HOA: −$0
• Vac / Maint / Mgmt: −$245
• Net cashflow: $59/mo
• Annual: $710/yr
• Cap rate: 6.85%
• Cash-on-cash: 2.00%
• DSCR: 1.09
• 1% rule: 0.92%
• Cash to close: $35,560

Investor read

• This is a 4-bed/2.5-bath single-family listed at $127k.
• At list price, monthly cash flow is $59 ($710/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $117k (8.2% below list).
• It's been on market 327 days — a 12% lower offer ($112k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $112k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $878 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#90 in KS, #4,934 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A-; Watch: crime D-, commute F, employment F.
• Hiawatha (town): math 26% / reading 32% proficiency, ranked #112 of 169 in KS (top 66%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Hiawatha Elem (math 27% / reading 32%, grade F, #463 of 684 statewide, top 73%, 359 students, 59% FRL); Hiawatha Middle School (math 26% / reading 34%, grade F, #64 of 219 statewide, top 32%, 276 students, 51% FRL); Hiawatha Sr High (math 22% / reading 22%, grade F, #165 of 327 statewide, top 55%, 267 students, 47% FRL).
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 32 active listings in the ZIP; 2 units permitted in Brown County in 2024 (0 in 5+ unit buildings).
• Brown County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $55k; list at $127k implies a 131% gain — meaningful room to come down on a strong offer.

Questions for listing agent

• It's been on market 327 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• Schools are D-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 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?
• 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.