1230 Bluestem Dr #2

Madison, KS 66860

$75,000B-

2 bd · 1.5 ba · 1,386 sqft · Built 1970 · Condo · Pending

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,053/mo
• Mortgage (P&I): −$393
• Tax + insurance: −$125
• HOA: −$160
• Vac / Maint / Mgmt: −$221
• Net cashflow: $153/mo
• Annual: $1,841/yr
• Cap rate: 8.75%
• Cash-on-cash: 8.77%
• DSCR: 1.39
• 1% rule: 1.40%
• Cash to close: $21,000

Investor read

• This is a 2-bed/1.5-bath condo listed at $75k.
• At list price, monthly cash flow is $153 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $75k).
• Only 0 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $6k of equity ($519 loan paydown + $5k appreciation (6.9% local appreciation)).
• Location reads 64/100 on livability (#318 in KS) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A-; Watch: crime F, amenities F, commute F.
• Madison-Virgil (rural): math 45% / reading 45% proficiency, ranked #32 of 280 in KS (top 11%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Madison High (math 24% / reading 15%, grade F, #198 of 327 statewide, top 66%, 95 students, 48% FRL).
• Zoned-school proficiency averages 20% at this address vs 45% district-wide (-25 pts) — the specific schools serving this property underperform the Madison-Virgil average; the district grade overstates school quality for this exact location.
• Market conditions: 12 active listings in the ZIP; 3 units permitted in Greenwood County in 2024 (0 in 5+ unit buildings).
• Greenwood County population projected at -35% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $56k; 34% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (6.9% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk; 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

• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 F 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.