403 Ward Ave

Caruthersville, MO 63830

$125,000C-

3 bd · 3.0 ba · 2,200 sqft · Built 1920 · Other · Active · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,166/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$79
• HOA: −$0
• Vac / Maint / Mgmt: −$245
• Net cashflow: $187/mo
• Annual: $2,239/yr
• Cap rate: 8.08%
• Cash-on-cash: 6.40%
• DSCR: 1.28
• 1% rule: 0.93%
• Cash to close: $35,000

Investor read

• This is a 3-bed/3.0-bath other listed at $125k.
• At list price, monthly cash flow is $187 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $117k (6.8% below list).
• It's been on market 40 days — a 3% lower offer ($121k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $117k (6.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.3%/yr); year-one equity from $864 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 54/100 on livability (#780 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, amenities F, commute F.
• Caruthersville 18 (town): math 14% / reading 24% proficiency, ranked #307 of 324 in MO (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Caruthersville Elementary (math 21% / reading 23%, grade F, #910 of 1,115 statewide, top 83%, 496 students, 99% FRL); Caruthersville Middle (math 11% / reading 20%, grade F, #359 of 391 statewide, top 92%, 188 students, 98% FRL); Caruthersville High (math 2% / reading 44%, grade F, #453 of 521 statewide, top 87%, 258 students, 99% FRL) — zoned schools average 99% FRL vs 69% district-wide (30 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 11 active listings in the ZIP; 17 units permitted in Pemiscot County in 2024 (10 in 5+ unit buildings).
• Pemiscot County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 40 days. Have you received any prior offers? Is the seller open to a 7% concession, seller financing, or rate buy-down credit?
• Built in 1920 — 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?
• 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.