715 Spruce St

Piedmont, MO 63957

$74,900B

4 bd · 2.0 ba · 1,200 sqft · Built 1940 · MultiFamily · Active · 92 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,578/mo
• Mortgage (P&I): −$393
• Tax + insurance: −$191
• HOA: −$0
• Vac / Maint / Mgmt: −$331
• Net cashflow: $663/mo
• Annual: $7,951/yr
• Cap rate: 17.97%
• Cash-on-cash: 41.71%
• DSCR: 2.86
• 1% rule: 2.11%
• Cash to close: $20,972

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $75k. Condition is rated poor.
• At list price, monthly cash flow is $663 ($8k/yr) — positive. Per door: $331/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $75k).
• It's been on market 92 days — a 9% lower offer ($68k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $68k (9.0% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($518 loan paydown + $4k appreciation (5.9% local appreciation)).
• Location reads 52/100 on livability (#854 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: schools F, crime F, amenities F.
• Clearwater R-I (rural): math 33% / reading 33% proficiency, ranked #255 of 324 in MO (top 79%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: flood insurance adds $66/mo; built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 69 active listings in the ZIP.
• Wayne County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (5.9% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk; moderate wildfire risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 18.0% vs local median 4.3% in Piedmont — 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 92 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — The roof appears to be in poor condition with visible damage and possible leaks.
• Major: exterior siding — The exterior siding is peeling and in poor condition, with visible damage and discoloration.
• Major: landscaping — The landscaping is overgrown and unkempt, with debris and trash scattered around the property.
• Major: fencing — The fencing is in poor condition and appears to be falling apart.
• Major: windows — The windows are broken and need immediate repair.
• Major: doors — The doors are missing and need immediate repair.