1647 County Road 806

Gainesville, MO 65655

$45,900A-

2 bd · 1.0 ba · 670 sqft · Built 1930 · Other · Active · 49 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $801/mo
• Mortgage (P&I): −$241
• Tax + insurance: −$32
• HOA: −$0
• Vac / Maint / Mgmt: −$168
• Net cashflow: $360/mo
• Annual: $4,320/yr
• Cap rate: 15.70%
• Cash-on-cash: 33.61%
• DSCR: 2.50
• 1% rule: 1.75%
• Cash to close: $12,852

Investor read

• This is a 2-bed/1.0-bath other listed at $46k.
• At list price, monthly cash flow is $360 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($801 rent vs $46k).
• It's been on market 49 days — a 3% lower offer ($45k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $45k (3.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($317 loan paydown + $3k appreciation (5.7% local appreciation)).
• Location reads 52/100 on livability (#856 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: crime F, amenities F, commute F.
• Gainesville R-V (rural): math 45% / reading 50% proficiency, ranked #85 of 324 in MO (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Gainesville Elem. (math 42% / reading 47%, grade F, #413 of 1,115 statewide, top 42%, 303 students, 76% FRL); Gainesville High (math 52% / reading 52%, grade D+, #92 of 521 statewide, top 20%, 314 students, 74% FRL) — zoned schools average 75% FRL vs 56% district-wide (19 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 61 active listings in the ZIP.
• Ozark County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (5.7% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 10, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 15.7% vs local median 3.1% in Gainesville — 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 49 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1930 — 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.
• 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.
• 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.