505 Sycamore St

Van Buren, MO 63965

$189,000D-

3 bd · 1.5 ba · 3,106 sqft · Built 1945 · SingleFamily · Active · 116 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,206/mo
• Mortgage (P&I): −$991
• Tax + insurance: −$315
• HOA: −$0
• Vac / Maint / Mgmt: −$253
• Net cashflow: $-353/mo
• Annual: $-4,239/yr
• Cap rate: 4.05%
• Cash-on-cash: -8.01%
• DSCR: 0.64
• 1% rule: 0.64%
• Cash to close: $52,920

Investor read

• This is a 3-bed/1.5-bath single-family listed at $189k.
• At list price, monthly cash flow is $-353 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $138k (27.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $121k (36.2% below list).
• It's been on market 116 days — a 9% lower offer ($172k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $121k (36.2% below list) — sets the bar for 1% rule.
• In year one you build about $19k of equity ($1k loan paydown + $18k 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 1945 — 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.
• 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.
• By year 2, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.1% 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

• 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?
• It's been on market 116 days. Have you received any prior offers? Is the seller open to a 36% concession, seller financing, or rate buy-down credit?
• Built in 1945 — 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 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?
• 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.