677 State Highway AA

Piedmont, MO 63957

$425,000C+

18 bd · 10.8 ba · 4,800 sqft · Built 2003 · MultiFamily · Active Under Contract · 277 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,963/mo
• Mortgage (P&I): −$2,229
• Tax + insurance: −$708
• HOA: −$0
• Vac / Maint / Mgmt: −$1,042
• Net cashflow: $984/mo
• Annual: $11,804/yr
• Cap rate: 9.07%
• Cash-on-cash: 9.92%
• DSCR: 1.44
• 1% rule: 1.17%
• Cash to close: $119,000

Investor read

• This is a 6 × 2-bed/1-bath units multifamily listed at $425k. Condition is rated poor.
• At list price, monthly cash flow is $984 ($12k/yr) — positive. Per door: $164/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $425k).
• It's been on market 277 days — a 12% lower offer ($374k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $374k (12.0% below list) — sets the bar for market timing.
• In year one you build about $28k of equity ($3k loan paydown + $25k 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: crime F, amenities F, commute 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.
• Zoned schools: Clearwater Elementary (math 42% / reading 32%, grade F, #611 of 1,115 statewide, top 59%, 414 students, 72% FRL); Clearwater Middle (math 26% / reading 27%, grade F, #313 of 391 statewide, top 81%, 263 students, 66% FRL); Clearwater High (math 34% / reading 57%, grade D-, #174 of 521 statewide, top 33%, 239 students, 55% FRL) — zoned schools at 64% FRL track the district average.
• Market conditions: 70 active listings in the ZIP.
• Reynolds County population projected at -29% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $27k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (5.9% appreciation + 3.0% rent growth), your $119k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$45k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.1% 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 277 days. Have you received any prior offers? Is the seller open to a 12% 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?
• 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 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?

Repairs flagged (vision-AI assessment)

• Major: kitchen appliances — outdated and non-functional
• Major: bathroom fixtures — worn and non-functional
• Major: roof — visible wear and tear
• Major: exterior siding — deteriorating and exposed
• Major: flooring — worn and uneven
• Major: interior walls — peeling paint and exposed drywall