502 N Locust St

Frankfort, KS 66427

$130,000D+

2 bd · 2.0 ba · 1,596 sqft · Built 1900 · SingleFamily · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,031/mo
• Mortgage (P&I): −$682
• Tax + insurance: −$151
• HOA: −$0
• Vac / Maint / Mgmt: −$217
• Net cashflow: $-18/mo
• Annual: $-218/yr
• Cap rate: 6.13%
• Cash-on-cash: -0.60%
• DSCR: 0.97
• 1% rule: 0.79%
• Cash to close: $36,400

Investor read

• This is a 2-bed/2.0-bath single-family listed at $130k.
• At list price, monthly cash flow is $-18 ($-218/yr) — negative.
• To cash-flow at today's rent, offer at most $127k (2.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $103k (20.7% below list).
• It's been on market 16 days — a 2% lower offer ($128k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $103k (20.7% below list) — sets the bar for 1% rule.
• In year one you build about $3k of equity ($899 loan paydown + $2k appreciation (1.6% local appreciation)).
• Location reads 78/100 on livability (#34 in KS, #2,774 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F.
• Vermillion (rural): math 47% / reading 46% proficiency, ranked #15 of 169 in KS (top 9%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Centralia Elem (math 67% / reading 62%, grade B, #45 of 684 statewide, top 8%, 210 students, 30% FRL); Centralia High (math 27% / reading 42%, grade F, #32 of 327 statewide, top 13%, 128 students, 27% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 7 units permitted in Marshall County in 2024 (0 in 5+ unit buildings).
• Marshall County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (1.6% appreciation + 3.0% rent growth), your $36k cash investment doubles in ~9 years — after that, you're playing with house money.

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 1900 — 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.