233 Castle Gate Dr

Seymour, MO 65746

$269,900D-

3 bd · 2.0 ba · 1,922 sqft · Built 2003 · Other · Active · 150 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,064/mo
• Mortgage (P&I): −$1,415
• Tax + insurance: −$207
• HOA: −$0
• Vac / Maint / Mgmt: −$224
• Net cashflow: $-781/mo
• Annual: $-9,377/yr
• Cap rate: 2.82%
• Cash-on-cash: -12.41%
• DSCR: 0.45
• 1% rule: 0.39%
• Cash to close: $75,572

Investor read

• This is a 3-bed/2.0-bath other listed at $270k.
• At list price, monthly cash flow is $-781 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $132k (51.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $106k (60.6% below list).
• It's been on market 150 days — a 12% lower offer ($238k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $106k (60.6% below list) — sets the bar for 1% rule.
• In year one you build about $28k of equity ($2k loan paydown + $26k appreciation (9.5% local appreciation)).
• Location reads 62/100 on livability (#374 in MO) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools D, amenities F, commute F.
• Seymour R-II (rural): math 28% / reading 43% proficiency, ranked #218 of 324 in MO (top 67%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 58 active listings in the ZIP; 168 units permitted in Webster County in 2024 (24 in 5+ unit buildings).
• Webster County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 11 sale attempts since 13y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 2, paydown + projected appreciation supports a ~$44k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 2.8% vs local median 2.0% in Seymour — 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

• 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?
• It's been on market 150 days. Have you received any prior offers? Is the seller open to a 61% concession, seller financing, or rate buy-down credit?
• 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.
• 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?
• 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.