205 W Chestnut St

Dixon, MO 65459

$77,500B-

2 bd · 1.0 ba · 960 sqft · Built 1950 · Other · Active · 33 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $865/mo
• Mortgage (P&I): −$406
• Tax + insurance: −$68
• HOA: −$0
• Vac / Maint / Mgmt: −$182
• Net cashflow: $209/mo
• Annual: $2,512/yr
• Cap rate: 9.53%
• Cash-on-cash: 11.58%
• DSCR: 1.52
• 1% rule: 1.12%
• Cash to close: $21,700

Investor read

• This is a 2-bed/1.0-bath other listed at $78k.
• At list price, monthly cash flow is $209 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($865 rent vs $78k).
• It's been on market 33 days — a 3% lower offer ($75k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $75k (3.0% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($536 loan paydown + $4k appreciation (5.2% local appreciation)).
• Location reads 61/100 on livability (#445 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Dixon R-I (rural): math 23% / reading 33% proficiency, ranked #280 of 324 in MO (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Dixon Elem. (math 42% / reading 47%, grade F, #413 of 1,115 statewide, top 42%, 394 students, 55% FRL); Dixon Middle (math 12% / reading 17%, grade F, #362 of 391 statewide, top 93%, 227 students, 55% FRL); Dixon High (math 5% / reading 32%, grade F, #481 of 521 statewide, top 92%, 277 students, 46% FRL).
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 78 active listings in the ZIP; 62 units permitted in Pulaski County in 2024 (0 in 5+ unit buildings).
• 3 sale attempts since 5y ago; this cycle's ask has dropped $5k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $65k; 19% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (5.2% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 9.5% vs local median 3.2% in Dixon — 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 33 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1950 — 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 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 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?
• 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.