601 Elm St

Van Buren, MO 63965

$94,000C+

2 bd · 1.0 ba · 742 sqft · Built 1935 · Other · Pending · 42 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $820/mo
• Mortgage (P&I): −$493
• Tax + insurance: −$67
• HOA: −$0
• Vac / Maint / Mgmt: −$172
• Net cashflow: $87/mo
• Annual: $1,047/yr
• Cap rate: 7.41%
• Cash-on-cash: 3.98%
• DSCR: 1.18
• 1% rule: 0.87%
• Cash to close: $26,320

Investor read

• This is a 2-bed/1.0-bath other listed at $94k.
• At list price, monthly cash flow is $87 ($1k/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 $82k (12.8% below list).
• It's been on market 42 days — a 3% lower offer ($91k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $82k (12.8% below list) — sets the bar for 1% rule.
• In year one you build about $10k of equity ($650 loan paydown + $9k appreciation (9.5% local appreciation)).
• Location reads 59/100 on livability (#516 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A-; Watch: housing C-, health & safety C-, amenities F.
• Van Buren R-I (rural): math 37% / reading 42% proficiency, ranked #169 of 324 in MO (top 52%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Van Buren Elem. (math 47% / reading 42%, grade F, #413 of 1,115 statewide, top 42%, 291 students, 70% FRL); Van Buren High (math 22% / reading 37%, grade F, #382 of 521 statewide, top 78%, 225 students, 57% FRL).
• Watch-outs: built in 1935 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 108 active listings in the ZIP; 2 units permitted in Carter County in 2024 (0 in 5+ unit buildings).
• Carter County population projected to shrink 10% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (9.5% appreciation + 3.0% rent growth), your $26k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 7.4% vs local median 1.9% in Van Buren — 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 42 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• Built in 1935 — 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?
• 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.