727 W Fannetta St

Dexter, MO 63841

$105,000D-

2 bd · 1.0 ba · 920 sqft · Built 1960 · Other · Active · 236 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $806/mo
• Mortgage (P&I): −$551
• Tax + insurance: −$94
• HOA: −$0
• Vac / Maint / Mgmt: −$169
• Net cashflow: $-8/mo
• Annual: $-92/yr
• Cap rate: 6.21%
• Cash-on-cash: -0.31%
• DSCR: 0.99
• 1% rule: 0.77%
• Cash to close: $29,400

Investor read

• This is a 2-bed/1.0-bath other listed at $105k.
• At list price, monthly cash flow is $-8 ($-92/yr) — negative.
• To cash-flow at today's rent, offer at most $104k (1.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $81k (23.2% below list).
• It's been on market 236 days — a 12% lower offer ($92k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $81k (23.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $726 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#221 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A; Watch: health & safety C-, crime D+, employment D.
• Dexter R-XI (town): math 41% / reading 45% proficiency, ranked #120 of 324 in MO (top 37%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Southwest Elem. (473 students, 55% FRL); T. S. Hill Middle (math 44% / reading 36%, grade F, #185 of 391 statewide, top 48%, 443 students, 48% FRL); Dexter High (math 32% / reading 62%, grade D-, #155 of 521 statewide, top 32%, 587 students, 44% FRL).
• Market conditions: 87 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 17 units permitted in Stoddard County in 2024 (0 in 5+ unit buildings).
• Stoddard County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 9y 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.
• Current owner paid $75k; 40% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.2% vs local median 3.7% in Dexter — 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 236 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• Crime grade is D 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?