514 S Mulberry St

Madison, KS 66860

$31,000B+

2 bd · 1.0 ba · 918 sqft · Built 1960 · SingleFamily · Active · 647 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $876/mo
• Mortgage (P&I): −$163
• Tax + insurance: −$52
• HOA: −$0
• Vac / Maint / Mgmt: −$184
• Net cashflow: $478/mo
• Annual: $5,732/yr
• Cap rate: 24.78%
• Cash-on-cash: 66.04%
• DSCR: 3.94
• 1% rule: 2.83%
• Cash to close: $8,680

Investor read

• This is a 2-bed/1.0-bath single-family listed at $31k.
• At list price, monthly cash flow is $478 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($876 rent vs $31k).
• It's been on market 647 days — a 12% lower offer ($27k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $27k (12.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($214 loan paydown + $2k 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: 11 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.
• 3 sale attempts since 8y ago; this cycle's ask has dropped $4k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $11k; list at $31k implies a 182% gain — meaningful room to come down on a strong offer.
• At projected returns (6.9% appreciation + 3.0% rent growth), your $9k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 647 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1960 — 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.
• 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.