707 Laurel Dr

Warrensburg, MO 64096

$250,000D

4 bd · 3.0 ba · 1,665 sqft · Built 1965 · Other · Pending · 145 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,366/mo
• Mortgage (P&I): −$1,311
• Tax + insurance: −$237
• HOA: −$0
• Vac / Maint / Mgmt: −$287
• Net cashflow: $-469/mo
• Annual: $-5,624/yr
• Cap rate: 4.04%
• Cash-on-cash: -8.03%
• DSCR: 0.64
• 1% rule: 0.55%
• Cash to close: $70,000

Investor read

• This is a 4-bed/3.0-bath other listed at $250k.
• At list price, monthly cash flow is $-469 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $167k (33.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $137k (45.4% below list).
• It's been on market 145 days — a 12% lower offer ($220k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $137k (45.4% below list) — sets the bar for 1% rule.
• In year one you build about $27k of equity ($2k loan paydown + $25k appreciation (10.0% local appreciation)).
• Location reads 74/100 on livability (#71 in MO, #4,801 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A; Watch: crime D+, employment D+, commute F.
• Warrensburg R-VI (town): math 30% / reading 45% proficiency, ranked #184 of 324 in MO (top 57%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Ridge View Elem. (462 students, 39% FRL); Warrensburg Middle (math 32% / reading 44%, grade F, #211 of 391 statewide, top 55%, 722 students, 30% FRL); Warrensburg High (math 24% / reading 60%, grade F, #218 of 521 statewide, top 45%, 992 students, 25% FRL) — zoned schools at 32% FRL track the district average.
• Market conditions: 9 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; 80 units permitted in Johnson County in 2024 (27 in 5+ unit buildings).
• Johnson County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts; this cycle's ask has dropped $25k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$43k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.0% vs local median 3.2% in Warrensburg — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 145 days. Have you received any prior offers? Is the seller open to a 45% concession, seller financing, or rate buy-down credit?
• Built in 1965 — 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?