704 E Mortimer St

New Florence, MO 63363

$120,000C

2 bd · 1.0 ba · 720 sqft · Built 1995 · Other · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,169/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$118
• HOA: −$0
• Vac / Maint / Mgmt: −$245
• Net cashflow: $176/mo
• Annual: $2,117/yr
• Cap rate: 8.06%
• Cash-on-cash: 6.30%
• DSCR: 1.28
• 1% rule: 0.97%
• Cash to close: $33,600

Investor read

• This is a 2-bed/1.0-bath other listed at $120k.
• At list price, monthly cash flow is $176 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $117k (2.6% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $117k (2.6% below list) — sets the bar for 1% rule.
• In year one you build about $6k of equity ($830 loan paydown + $5k appreciation (4.1% local appreciation)).
• Location reads 56/100 on livability (#697 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: employment D+, crime F, amenities F.
• Montgomery County R-II (rural): math 30% / reading 42% proficiency, ranked #206 of 324 in MO (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Montgomery City Elem. (math 37% / reading 37%, grade F, #611 of 1,115 statewide, top 59%, 353 students, 49% FRL); Montgomery Co. High (math 17% / reading 52%, grade F, #321 of 521 statewide, top 67%, 363 students, 43% FRL) — zoned schools at 46% FRL track the district average.
• Market conditions: 38 active listings in the ZIP; 47 units permitted in Montgomery County in 2024 (0 in 5+ unit buildings).
• Montgomery County population projected at -31% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (4.1% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• 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?
• 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.