102 Cherry

Minneapolis, KS 67467

$135,000D

3 bd · 3.0 ba · 2,310 sqft · Built 1973 · SingleFamily · Pending · 70 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,135/mo
• Mortgage (P&I): −$708
• Tax + insurance: −$294
• HOA: −$0
• Vac / Maint / Mgmt: −$238
• Net cashflow: $-105/mo
• Annual: $-1,257/yr
• Cap rate: 5.36%
• Cash-on-cash: -3.33%
• DSCR: 0.85
• 1% rule: 0.84%
• Cash to close: $37,800

Investor read

• This is a 3-bed/3.0-bath single-family listed at $135k.
• At list price, monthly cash flow is $-105 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $116k (13.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $114k (15.9% below list).
• It's been on market 70 days — a 6% lower offer ($127k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $114k (15.9% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($933 loan paydown + $4k appreciation (2.8% local appreciation)).
• Location reads 77/100 on livability (#40 in KS, #3,169 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• North Ottawa County (rural): math 34% / reading 34% proficiency, ranked #62 of 169 in KS (top 37%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Minneapolis Elementary (math 37% / reading 37%, grade F, #358 of 684 statewide, top 56%, 327 students, 51% FRL); Minneapolis Jr-Sr High School (math 27% / reading 32%, grade F, #60 of 327 statewide, top 24%, 302 students, 45% FRL) — zoned schools average 48% FRL vs 29% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 24 active listings in the ZIP; 12 units permitted in Ottawa County in 2024 (0 in 5+ unit buildings).
• Ottawa County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $96k; 41% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 8, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 70 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Built in 1973 — 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.
• 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.