105 S Carleton St

Farmington, MO 63640

$214,900F

2 bd · 1.0 ba · 1,520 sqft · Built 1940 · Other · Active · 32 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,225/mo
• Mortgage (P&I): −$1,127
• Tax + insurance: −$157
• HOA: −$0
• Vac / Maint / Mgmt: −$257
• Net cashflow: $-316/mo
• Annual: $-3,795/yr
• Cap rate: 4.53%
• Cash-on-cash: -6.31%
• DSCR: 0.72
• 1% rule: 0.57%
• Cash to close: $60,172

Investor read

• This is a 2-bed/1.0-bath other listed at $215k.
• At list price, monthly cash flow is $-316 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $159k (26.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $122k (43.0% below list).
• It's been on market 32 days — a 3% lower offer ($208k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $122k (43.0% 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 $6k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#217 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D+, crime D, amenities F.
• Farmington R-VII (town): math 41% / reading 50% proficiency, ranked #93 of 324 in MO (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Truman Learning Center (430 students, 50% FRL); Farmington Middle (math 41% / reading 52%, grade D+, #99 of 391 statewide, top 26%, 629 students, 49% FRL); Farmington Sr. High (math 56% / reading 63%, grade C+, #35 of 521 statewide, top 8%, 1,274 students, 42% FRL) — zoned schools at 47% FRL track the district average.
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 123 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 134 units permitted in St. Francois County in 2024 (32 in 5+ unit buildings).
• 3 sale attempts since 11y ago 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.
• Cap rate 4.5% vs local median 2.8% in Farmington — 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 32 days. Have you received any prior offers? Is the seller open to a 43% concession, seller financing, or rate buy-down credit?
• Built in 1940 — 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.
• 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.