132 Walnut St

McCord Bend, MO 65624

$139,000D

2 bd · 1.0 ba · 634 sqft · Built 2019 · Other · Active · 132 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $803/mo
• Mortgage (P&I): −$729
• Tax + insurance: −$96
• HOA: −$25
• Vac / Maint / Mgmt: −$169
• Net cashflow: $-215/mo
• Annual: $-2,581/yr
• Cap rate: 4.44%
• Cash-on-cash: -6.63%
• DSCR: 0.70
• 1% rule: 0.58%
• Cash to close: $38,920

Investor read

• This is a 2-bed/1.0-bath other listed at $139k.
• At list price, monthly cash flow is $-215 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $101k (27.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $80k (42.2% below list).
• It's been on market 132 days — a 12% lower offer ($122k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $80k (42.2% below list) — sets the bar for 1% rule.
• In year one you build about $7k of equity ($961 loan paydown + $6k appreciation (4.0% local appreciation)).
• Location reads 51/100 on livability (#875 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: health & safety C-, crime F, amenities F.
• Reeds Spring R-IV (rural): math 34% / reading 42% proficiency, ranked #182 of 324 in MO (top 56%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Reeds Spring Elem. (math 33% / reading 33%, grade F, #744 of 1,115 statewide, top 67%, 358 students, 62% FRL); Reeds Spring Middle (math 31% / reading 46%, grade F, #202 of 391 statewide, top 54%, 286 students, 56% FRL); Reeds Spring High (math 32% / reading 47%, grade F, #247 of 521 statewide, top 55%, 602 students, 47% FRL) — zoned schools at 55% FRL track the district average.
• Market conditions: 79 active listings in the ZIP; 191 units permitted in Stone County in 2024 (0 in 5+ unit buildings).
• Stone County population projected at -30% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 2y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 6, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.4% vs local median 1.3% in McCord Bend — 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

• 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 132 days. Have you received any prior offers? Is the seller open to a 42% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 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?
• 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?