113 N Birch St

Hillsboro, KS 67063

$59,000B

5 bd · 1.0 ba · 1,868 sqft · Built 1900 · SingleFamily · Pending · 194 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,078/mo
• Mortgage (P&I): −$309
• Tax + insurance: −$139
• HOA: −$0
• Vac / Maint / Mgmt: −$226
• Net cashflow: $404/mo
• Annual: $4,845/yr
• Cap rate: 14.51%
• Cash-on-cash: 29.33%
• DSCR: 2.30
• 1% rule: 1.83%
• Cash to close: $16,520

Investor read

• This is a 5-bed/1.0-bath single-family listed at $59k.
• At list price, monthly cash flow is $404 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $59k).
• It's been on market 194 days — a 12% lower offer ($52k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $52k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $408 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#26 in KS, #2,407 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment C-, amenities D, commute F.
• Durham-Hillsboro-Lehigh (town): math 47% / reading 45% proficiency, ranked #16 of 169 in KS (top 10%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hillsboro Elem (math 52% / reading 52%, grade C-, #131 of 684 statewide, top 23%, 313 students, 49% FRL); Hillsboro Middle/High School (math 42% / reading 42%, grade F, #12 of 327 statewide, top 5%, 327 students, 36% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 14 active listings in the ZIP; 25 units permitted in Marion County in 2024 (0 in 5+ unit buildings).
• Marion County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 16y ago; this cycle's ask has dropped $13k (18%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $30k; list at $59k implies a 97% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $17k cash investment doubles in ~5 years — after that, you're playing with house money.
• 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.

Questions for listing agent

• It's been on market 194 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1900 — 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.
• 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.