1610 S Western St

Mexico, MO 65265

$97,000C+

3 bd · 2.0 ba · 1,496 sqft · Built 1948 · Other · Active · 114 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $993/mo
• Mortgage (P&I): −$509
• Tax + insurance: −$90
• HOA: −$0
• Vac / Maint / Mgmt: −$209
• Net cashflow: $186/mo
• Annual: $2,228/yr
• Cap rate: 8.59%
• Cash-on-cash: 8.20%
• DSCR: 1.37
• 1% rule: 1.02%
• Cash to close: $27,160

Investor read

• This is a 3-bed/2.0-bath other listed at $97k.
• At list price, monthly cash flow is $186 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($993 rent vs $97k).
• It's been on market 114 days — a 9% lower offer ($88k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $88k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $671 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#256 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A, health & safety A-; Watch: schools D-, crime F, amenities F.
• Mexico 59 (town): math 31% / reading 38% proficiency, ranked #229 of 324 in MO (top 71%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 136 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 14d on market — plan ~3-4 weeks tenant-placement turnaround); 27 units permitted in Audrain County in 2024 (0 in 5+ unit buildings).
• Audrain County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 6 sale attempts; this cycle's ask has dropped $23k (19%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $44k; list at $97k implies a 119% gain — meaningful room to come down on a strong offer.
• Cap rate 8.6% vs local median 4.5% in Mexico — 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 114 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1948 — 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?
• 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.