595 Highway 61

Bloomsdale, MO 63627

$148,000D

3 bd · 1.0 ba · 1,400 sqft · Built 1934 · Other · Active · 311 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,172/mo
• Mortgage (P&I): −$776
• Tax + insurance: −$136
• HOA: −$0
• Vac / Maint / Mgmt: −$246
• Net cashflow: $13/mo
• Annual: $160/yr
• Cap rate: 6.40%
• Cash-on-cash: 0.38%
• DSCR: 1.02
• 1% rule: 0.79%
• Cash to close: $41,440

Investor read

• This is a 3-bed/1.0-bath other listed at $148k.
• At list price, monthly cash flow is $13 ($160/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $117k (20.8% below list).
• It's been on market 311 days — a 12% lower offer ($130k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $117k (20.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#478 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment A-; Watch: crime D+, amenities F, commute F.
• Ste. Genevieve County R-II (town): math 46% / reading 50% proficiency, ranked #59 of 324 in MO (top 18%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Bloomsdale Elem. (math 52% / reading 47%, grade D, #284 of 1,115 statewide, top 30%, 327 students, 43% FRL); Ste. Genevieve Middle (math 49% / reading 47%, grade C-, #84 of 391 statewide, top 22%, 421 students, 39% FRL); Ste. Genevieve Sr. High (math 22% / reading 67%, grade F, #179 of 521 statewide, top 39%, 517 students, 34% FRL) — zoned schools at 39% FRL track the district average.
• Watch-outs: built in 1934 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 6 active listings in the ZIP; 8 units permitted in Ste. Genevieve County in 2024 (0 in 5+ unit buildings).
• Ste. Genevieve County population projected to shrink 10% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 5 sale attempts since 4y ago; this cycle's ask has dropped $32k (18%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 311 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• Built in 1934 — 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.
• Crime grade is D 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?
• 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.