6096 Highway 87

Franklin, MO 65274

$1C-

3 bd · 1.0 ba · 1,290 sqft · Built 1961 · Other · Pending · 33 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,060/mo
• Mortgage (P&I): −$0
• Tax + insurance: −$0
• HOA: −$0
• Vac / Maint / Mgmt: −$223
• Net cashflow: $838/mo
• Annual: $10,052/yr
• Cap rate: 1005181.36%
• Cash-on-cash: 3589910.95%
• DSCR: 159731.84
• 1% rule: 106032.00%
• Cash to close: $0

Investor read

• This is a 3-bed/1.0-bath other listed at $1.
• At list price, monthly cash flow is $838 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $1).
• It's been on market 33 days — a 3% lower offer ($0) is reasonable based on typical stale-listing flexibility.
• Location reads 52/100 on livability (#846 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A; Watch: amenities F, commute F, employment F.
• New Franklin R-I (town): math 34% / reading 52% proficiency, ranked #116 of 324 in MO (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: New Franklin Elementary (math 47% / reading 47%, grade D-, #347 of 1,115 statewide, top 35%, 203 students, 37% FRL); New Franklin Middle-High (math 22% / reading 57%, grade F, #247 of 521 statewide, top 55%, 219 students, 32% FRL) — zoned schools at 35% FRL track the district average.
• Market conditions: 15 active listings in the ZIP; 9 units permitted in Howard County in 2024 (5 in 5+ unit buildings).
• Howard County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (2.7% appreciation + 3.0% rent growth), your $0 cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• It's been on market 33 days. Have you received any prior offers? Is the seller open to a 5% concession, seller financing, or rate buy-down credit?
• Built in 1961 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.