587 Panich St

Pleasant Hope, MO 65725

$538,500D

9 bd · 0.0 ba · 3,510 sqft · Built 2025 · MultiFamily · Active · 170 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,650/mo
• Mortgage (P&I): −$2,824
• Tax + insurance: −$898
• HOA: −$0
• Vac / Maint / Mgmt: −$976
• Net cashflow: $-48/mo
• Annual: $-575/yr
• Cap rate: 6.19%
• Cash-on-cash: -0.38%
• DSCR: 0.98
• 1% rule: 0.86%
• Cash to close: $150,780

Investor read

• This is a 3 × 3-bed/2-bath units multifamily listed at $538k. Condition is rated excellent.
• At list price, monthly cash flow is $-48 ($-575/yr) — negative. Per door: $-16/mo.
• To cash-flow at today's rent, offer at most $532k (1.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $465k (13.6% below list).
• It's been on market 170 days — a 12% lower offer ($474k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $465k (13.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#413 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Pleasant Hope R-VI (rural): math 21% / reading 35% proficiency, ranked #281 of 324 in MO (top 87%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Pleasant Hope Elem. (math 27% / reading 42%, grade F, #676 of 1,115 statewide, top 66%, 268 students, 58% FRL); Pleasant Hope Middle (math 19% / reading 33%, grade F, #316 of 391 statewide, top 81%, 202 students, 67% FRL); Pleasant Hope High (math 15% / reading 34%, grade F, #436 of 521 statewide, top 85%, 282 students, 53% FRL).
• Market conditions: 15 active listings in the ZIP; 188 units permitted in Polk County in 2024 (40 in 5+ unit buildings).
• 2 sale attempts 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.
• Climate carrying-cost: moderate flood risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 170 days. Have you received any prior offers? Is the seller open to a 14% 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?
• 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?
• 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?