705 Locust St

Sweet Springs, MO 65351

$50,000B+

4 bd · 2.0 ba · 2,771 sqft · Built 1910 · Other · Pending · 35 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,375/mo
• Mortgage (P&I): −$262
• Tax + insurance: −$72
• HOA: −$0
• Vac / Maint / Mgmt: −$289
• Net cashflow: $753/mo
• Annual: $9,030/yr
• Cap rate: 24.35%
• Cash-on-cash: 64.50%
• DSCR: 3.87
• 1% rule: 2.75%
• Cash to close: $14,000

Investor read

• This is a 4-bed/2.0-bath other listed at $50k.
• At list price, monthly cash flow is $753 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $50k).
• It's been on market 35 days — a 3% lower offer ($48k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $48k (3.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($346 loan paydown + $2k appreciation (4.0% local appreciation)).
• Location reads 64/100 on livability (#302 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Sweet Springs R-VII (rural): math 37% / reading 45% proficiency, ranked #135 of 324 in MO (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Sweet Springs Elem. (math 47% / reading 52%, grade D, #284 of 1,115 statewide, top 30%, 210 students, 47% FRL); Sweet Springs High (math 22% / reading 37%, grade F, #382 of 521 statewide, top 78%, 192 students, 35% FRL) — zoned schools at 41% FRL track the district average.
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 18 active listings in the ZIP; 11 units permitted in Saline County in 2024 (0 in 5+ unit buildings).
• Saline County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (4.0% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 35 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1910 — 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.
• 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.