5326-5328 N Cypress St

Bel Aire, KS 67226

$422,500D-

8 bd · 6.0 ba · 4,102 sqft · Built 2019 · MultiFamily · Pending · 124 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,737/mo
• Mortgage (P&I): −$2,216
• Tax + insurance: −$894
• HOA: −$17
• Vac / Maint / Mgmt: −$785
• Net cashflow: $-175/mo
• Annual: $-2,096/yr
• Cap rate: 5.80%
• Cash-on-cash: -1.77%
• DSCR: 0.92
• 1% rule: 0.88%
• Cash to close: $118,300

Investor read

• This is a 2 × 4-bed/?-bath units multifamily listed at $422k.
• At list price, monthly cash flow is $-175 ($-2k/yr) — negative. Per door: $-87/mo.
• To cash-flow at today's rent, offer at most $392k (7.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $374k (11.6% below list).
• It's been on market 124 days — a 12% lower offer ($372k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $372k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#110 in KS) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, cost of living A+; Watch: amenities F, commute F.
• Circle (rural): math 33% / reading 45% proficiency, ranked #28 of 169 in KS (top 17%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Circle Greenwich Elementary (math 57% / reading 67%, grade B, #59 of 684 statewide, top 9%, 332 students, 21% FRL); Circle Middle School (math 17% / reading 33%, grade F, #108 of 219 statewide, top 50%, 303 students, 32% FRL); Circle High (math 17% / reading 32%, grade F, #105 of 327 statewide, top 49%, 600 students, 31% FRL).
• Market conditions: Rents rising fast (+4.7%/yr); 112 active listings in the ZIP; solid renter incomes; 2,613 units permitted in Sedgwick County in 2024 (258 in 5+ unit buildings).
• Sedgwick County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 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.
• At $3,737/mo this rent would consume 49% of the median local household income ($92k/yr) (locally 779% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 124 days. Have you received any prior offers? Is the seller open to a 12% 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?
• 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?