207 S 5th St

Louisiana, MO 63353

$1,100,000B-

2 bd · 16.0 ba · 11,728 sqft · Built 1978 · MultiFamily · Active · 173 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $18,781/mo
• Mortgage (P&I): −$5,769
• Tax + insurance: −$930
• HOA: −$0
• Vac / Maint / Mgmt: −$3,944
• Net cashflow: $8,138/mo
• Annual: $97,660/yr
• Cap rate: 15.17%
• Cash-on-cash: 31.71%
• DSCR: 2.41
• 1% rule: 1.71%
• Cash to close: $308,000

Investor read

• This is a 16 × 2-bed/1.0-bath units multifamily listed at $1.10M.
• At list price, monthly cash flow is $8k ($98k/yr) — positive. Per door: $509/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($19k rent vs $1.10M).
• It's been on market 173 days — a 12% lower offer ($968k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $968k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $8k of loan paydown is wiped out by about $33k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#105 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities F, commute F, employment D-.
• Louisiana R-II (town): math 31% / reading 39% proficiency, ranked #227 of 324 in MO (top 70%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Louisiana Elem. (math 27% / reading 37%, grade F, #761 of 1,115 statewide, top 72%, 322 students, 74% FRL); Louisiana Middle (math 42% / reading 42%, grade D-, #149 of 391 statewide, top 41%, 173 students, 74% FRL); Louisiana High (math 17% / reading 44%, grade F, #373 of 521 statewide, top 72%, 226 students, 62% FRL).
• Market conditions: 32 active listings in the ZIP; 38 units permitted in Pike County in 2024 (0 in 5+ unit buildings).
• Pike County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts; this cycle's ask has dropped $300k (21%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $308k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 15.2% vs local median 8.4% in Louisiana — 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 173 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?
• Built in 1978 — 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?
• 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.