103 N Cherry N

Middletown, MO 63384

$103,000C-

2 bd · 1.0 ba · 957 sqft · Built 1900 · Other · Active · 445 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $876/mo
• Mortgage (P&I): −$540
• Tax + insurance: −$87
• HOA: −$0
• Vac / Maint / Mgmt: −$184
• Net cashflow: $65/mo
• Annual: $780/yr
• Cap rate: 7.05%
• Cash-on-cash: 2.70%
• DSCR: 1.12
• 1% rule: 0.85%
• Cash to close: $28,840

Investor read

• This is a 2-bed/1.0-bath other listed at $103k.
• At list price, monthly cash flow is $65 ($780/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 $88k (15.0% below list).
• It's been on market 445 days — a 12% lower offer ($91k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $88k (15.0% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($712 loan paydown + $4k appreciation (3.9% local appreciation)).
• Location reads 53/100 on livability (#823 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Wellsville Middletown R-I (rural): math 25% / reading 40% proficiency, ranked #433 of 535 in MO (top 81%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Wellsville-Middletown Elem. (math 37% / reading 27%, grade F, #761 of 1,115 statewide, top 72%, 148 students, 60% FRL); Wellsville-Middletown Hs (math 37% / reading 42%, grade F, #247 of 521 statewide, top 55%, 163 students, 53% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 9 active listings in the ZIP; 47 units permitted in Montgomery County in 2024 (0 in 5+ unit buildings).
• Montgomery County population projected at -31% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (3.9% appreciation + 3.0% rent growth), your $29k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 445 days. Have you received any prior offers? Is the seller open to a 15% concession, seller financing, or rate buy-down credit?
• Built in 1900 — 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.
• Schools are F-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.