2929 S Harvard Ave

Independence, MO 64052

$682,000D

10 bd · 10.0 ba · 6,066 sqft · Built 2004 · MultiFamily · Active · 39 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,012/mo
• Mortgage (P&I): −$3,576
• Tax + insurance: −$819
• HOA: −$200
• Vac / Maint / Mgmt: −$1,053
• Net cashflow: $-636/mo
• Annual: $-7,628/yr
• Cap rate: 5.17%
• Cash-on-cash: -3.99%
• DSCR: 0.82
• 1% rule: 0.73%
• Cash to close: $190,960

Investor read

• This is a 3 × 3-bed/?-bath units multifamily listed at $682k.
• At list price, monthly cash flow is $-636 ($-8k/yr) — negative. Per door: $-212/mo.
• To cash-flow at today's rent, offer at most $570k (16.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $501k (26.5% below list).
• It's been on market 39 days — a 3% lower offer ($662k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $501k (26.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $20k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#10 in MO, #1,296 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: employment D+, crime F.
• Independence 30 (suburban): math 26% / reading 38% proficiency, ranked #252 of 324 in MO (top 78%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Three Trails Elem. (math 37% / reading 32%, grade F, #676 of 1,115 statewide, top 66%, 317 students, 75% FRL); Clifford H. Nowlin Middle (math 13% / reading 29%, grade F, #342 of 391 statewide, top 88%, 875 students, 80% FRL); Van Horn High (math 13% / reading 27%, grade F, #472 of 521 statewide, top 91%, 1,047 students, 72% FRL) — zoned schools average 76% FRL vs 58% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+5.4%/yr); 135 active listings in the ZIP; 4,002 units permitted in Jackson County in 2024 (2,271 in 5+ unit buildings).
• Jackson County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 8 sale attempts since 15y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At $5,012/mo this rent would consume 102% of the median local household income ($59k/yr) (locally 965% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 39 days. Have you received any prior offers? Is the seller open to a 27% 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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?