2571 Tyrell

Jennings, MO 63136

$3,120,000B+

None bd · 7396.0 ba · 53,800 sqft · Built 1963 · MultiFamily · Pending · 72 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $83,331/mo
• Mortgage (P&I): −$16,362
• Tax + insurance: −$5,266
• HOA: −$0
• Vac / Maint / Mgmt: −$17,500
• Net cashflow: $44,203/mo
• Annual: $530,441/yr
• Cap rate: 23.32%
• Cash-on-cash: 60.81%
• DSCR: 3.71
• 1% rule: 2.67%
• Cash to close: $873,600

Investor read

• This is a 43×2bd/1.0ba + 43×1bd/1.0ba units multifamily listed at $3.12M.
• At list price, monthly cash flow is $44k ($530k/yr) — positive. Per door: $514/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($83k rent vs $3.12M).
• It's been on market 72 days — a 6% lower offer ($2.93M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.93M (6.0% below list) — sets the bar for market timing.
• In year one you build about $140k of equity ($22k loan paydown + $118k appreciation (3.8% local appreciation)).
• Location reads 67/100 on livability (#208 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, commute A-, housing A-; Watch: crime F, amenities F, employment F.
• Jennings (suburban): math 8% / reading 20% proficiency, ranked #315 of 324 in MO (top 97%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 86% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Northview Elem. (math 3% / reading 20%, grade F, #1,022 of 1,115 statewide, top 92%, 524 students, 100% FRL); Rose Johnson Jennings Jr. High (math 10% / reading 23%, grade F, #357 of 391 statewide, top 91%, 361 students, 100% FRL); Jennings High (math 8% / reading 17%, grade F, #497 of 521 statewide, top 96%, 691 students, 100% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents rising fast (+5.0%/yr); 379 active listings in the ZIP; lower-income renter base — watch delinquency; 920 units permitted in St. Louis County in 2024 (250 in 5+ unit buildings).
• At projected returns (3.8% appreciation + 5.0% rent growth), your $874k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$226k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 23.3% vs local median 11.9% in Jennings — 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.
• At $83,331/mo this rent would consume 2430% of the median local household income ($41k/yr) (locally 3085% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 72 days. Have you received any prior offers? Is the seller open to a 6% 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?
• Built in 1963 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?