809 Middle St

Fulton, MO 65251

$42,000B-

1 bd · 1.0 ba · 672 sqft · Built 1955 · SingleFamily · Pending · 111 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $770/mo
• Mortgage (P&I): −$220
• Tax + insurance: −$68
• HOA: −$0
• Vac / Maint / Mgmt: −$162
• Net cashflow: $320/mo
• Annual: $3,837/yr
• Cap rate: 15.43%
• Cash-on-cash: 32.63%
• DSCR: 2.45
• 1% rule: 1.83%
• Cash to close: $11,760

Investor read

• This is a 1-bed/1.0-bath single-family listed at $42k.
• At list price, monthly cash flow is $320 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($770 rent vs $42k).
• It's been on market 111 days — a 9% lower offer ($38k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $38k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $290 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#115 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B+; Watch: amenities F, commute F, employment D-.
• Fulton 58 (town): math 36% / reading 42% proficiency, ranked #158 of 324 in MO (top 49%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Bush Elem. (math 37% / reading 42%, grade F, #537 of 1,115 statewide, top 53%, 370 students, 44% FRL); Fulton Middle (math 36% / reading 37%, grade F, #231 of 391 statewide, top 60%, 498 students, 39% FRL); Fulton Sr. High (math 32% / reading 42%, grade F, #291 of 521 statewide, top 60%, 678 students, 33% FRL).
• Watch-outs: built in 1955 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 137 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 weeks tenant-placement turnaround); 40 units permitted in Callaway County in 2024 (0 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $12k cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 15.4% vs local median 3.9% in Fulton — 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.
• This rent is only 15% of the median local income ($63k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Questions for listing agent

• It's been on market 111 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1955 — 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.
• 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.