413 E Oak St

Clinton, MO 64735

$32,900B-

2 bd · 1.0 ba · 789 sqft · Built 1965 · Other · Active · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $823/mo
• Mortgage (P&I): −$173
• Tax + insurance: −$46
• HOA: −$0
• Vac / Maint / Mgmt: −$173
• Net cashflow: $432/mo
• Annual: $5,180/yr
• Cap rate: 22.04%
• Cash-on-cash: 56.23%
• DSCR: 3.50
• 1% rule: 2.50%
• Cash to close: $9,212

Investor read

• This is a 2-bed/1.0-bath other listed at $33k.
• At list price, monthly cash flow is $432 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($823 rent vs $33k).
• It's been on market 25 days — a 2% lower offer ($32k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $32k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $227 of loan paydown is wiped out by about $987 of value loss. Plan a longer hold.
• Location reads 56/100 on livability (#683 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Clinton (town): math 32% / reading 36% proficiency, ranked #235 of 324 in MO (top 72%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Henry Elem. (377 students, 54% FRL); Clinton Middle (math 27% / reading 26%, grade F, #313 of 391 statewide, top 81%, 356 students, 45% FRL); Clinton Sr. High (math 32% / reading 52%, grade F, #218 of 521 statewide, top 45%, 604 students, 34% FRL) — zoned schools at 44% FRL track the district average.
• Market conditions: 188 active listings in the ZIP; 15 units permitted in Henry County in 2024 (0 in 5+ unit buildings).
• Henry County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $9k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 22.0% vs local median 2.9% in Clinton — 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

• Built in 1965 — 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 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.
• 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.