5819 Helen Ave

Jennings, MO 63136

$33,000A-

1 bd · 1.0 ba · 720 sqft · Built 1925 · SingleFamily · Active · 54 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $982/mo
• Mortgage (P&I): −$173
• Tax + insurance: −$62
• HOA: −$0
• Vac / Maint / Mgmt: −$206
• Net cashflow: $540/mo
• Annual: $6,486/yr
• Cap rate: 25.95%
• Cash-on-cash: 70.19%
• DSCR: 4.12
• 1% rule: 2.97%
• Cash to close: $9,240

Investor read

• This is a 1-bed/1.0-bath single-family listed at $33k.
• At list price, monthly cash flow is $540 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($982 rent vs $33k).
• It's been on market 54 days — a 3% lower offer ($32k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $32k (3.0% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($228 loan paydown + $1k 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: schools D-, crime F, amenities 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.
• Watch-outs: built in 1925 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.0%/yr); 372 active listings in the ZIP; 11 comparable units currently listed for rent nearby; rentals at typical pace (median 18d on market — plan ~3-4 weeks tenant-placement turnaround); lower-income renter base — watch delinquency; 920 units permitted in St. Louis County in 2024 (250 in 5+ unit buildings).
• 2 sale attempts; this cycle's ask has dropped $12k (27%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (3.8% appreciation + 5.0% rent growth), your $9k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 25.9% vs local median 12.2% 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.

Questions for listing agent

• It's been on market 54 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1925 — 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.
• 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.
• 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.