77 Ruth Dr

St. Charles, MO 63301

$265,000F

3 bd · 1.0 ba · 1,160 sqft · Built 1960 · SingleFamily · Pending · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,617/mo
• Mortgage (P&I): −$1,390
• Tax + insurance: −$339
• HOA: −$0
• Vac / Maint / Mgmt: −$339
• Net cashflow: $-451/mo
• Annual: $-5,414/yr
• Cap rate: 4.25%
• Cash-on-cash: -7.30%
• DSCR: 0.68
• 1% rule: 0.61%
• Cash to close: $74,200

Investor read

• This is a 3-bed/1.0-bath single-family listed at $265k.
• At list price, monthly cash flow is $-451 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $185k (30.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $162k (39.0% below list).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $162k (39.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• St. Charles R-VI (urban): math 44% / reading 52% proficiency, ranked #51 of 324 in MO (top 16%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Monroe Elem. (math 42% / reading 47%, grade F, #413 of 1,115 statewide, top 42%, 388 students, 53% FRL); St. Charles High (math 42% / reading 54%, grade D, #153 of 521 statewide, top 29%, 817 students, 43% FRL).
• Market conditions: Rents rising (+3.2%/yr); 301 active listings in the ZIP; 17 comparable units currently listed for rent nearby; rentals leasing fast (median 10d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 2,021 units permitted in St. Charles County in 2024 (568 in 5+ unit buildings).
• St. Charles County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $154k; list at $265k implies a 72% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.2% vs local median 3.4% in St. Charles — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.