765 Main St

Morrison, MO 65061

$153,000D-

3 bd · 1.0 ba · 896 sqft · Built 1900 · SingleFamily · Active · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $954/mo
• Mortgage (P&I): −$802
• Tax + insurance: −$116
• HOA: −$0
• Vac / Maint / Mgmt: −$200
• Net cashflow: $-164/mo
• Annual: $-1,971/yr
• Cap rate: 5.00%
• Cash-on-cash: -4.60%
• DSCR: 0.80
• 1% rule: 0.62%
• Cash to close: $42,840

Investor read

• This is a 3-bed/1.0-bath single-family listed at $153k.
• At list price, monthly cash flow is $-164 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $124k (19.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $95k (37.6% below list).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $95k (37.6% below list) — sets the bar for 1% rule.
• In year one you build about $11k of equity ($1k loan paydown + $10k appreciation (6.6% local appreciation)).
• Location reads 53/100 on livability (#834 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Osage County R-I (rural): math 45% / reading 40% proficiency, ranked #242 of 535 in MO (top 45%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Osage Co. Elem. (math 24% / reading 24%, grade F, #879 of 1,115 statewide, top 81%, 72 students, 58% FRL); Chamois High (math 50% / reading 70%, grade C+, #35 of 521 statewide, top 8%, 68 students, 44% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 6 active listings in the ZIP; 5 units permitted in Gasconade County in 2024 (5 in 5+ unit buildings).
• Gasconade County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 4, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Built in 1900 — 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 F-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?
• 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.