1637 E 541st Rd

Pleasant Hope, MO 65617

$350,000D-

4 bd · 3.0 ba · 1,620 sqft · Built 2004 · Other · Pending · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,365/mo
• Mortgage (P&I): −$1,835
• Tax + insurance: −$271
• HOA: −$0
• Vac / Maint / Mgmt: −$287
• Net cashflow: $-1,028/mo
• Annual: $-12,338/yr
• Cap rate: 2.77%
• Cash-on-cash: -12.59%
• DSCR: 0.44
• 1% rule: 0.39%
• Cash to close: $98,000

Investor read

• This is a 4-bed/3.0-bath other listed at $350k.
• At list price, monthly cash flow is $-1k ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $168k (51.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $137k (61.0% below list).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $137k (61.0% below list) — sets the bar for 1% rule.
• In year one you build about $37k of equity ($2k loan paydown + $35k appreciation (10.0% local appreciation)).
• 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.
• Marion C. Early R-V (rural): math 37% / reading 39% proficiency, ranked #175 of 324 in MO (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Marion C. Early Elem. (math 37% / reading 42%, grade F, #537 of 1,115 statewide, top 53%, 259 students, 52% FRL); Marion C. Early Junior High (math 37% / reading 32%, grade F, #243 of 391 statewide, top 65%, 146 students, 45% FRL); Marion C. Early High (math 34% / reading 64%, grade D, #124 of 521 statewide, top 28%, 161 students, 40% FRL) — zoned schools at 46% FRL track the district average.
• Market conditions: 24 active listings in the ZIP; 188 units permitted in Polk County in 2024 (40 in 5+ unit buildings).
• 4 sale attempts since 6y 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 2, paydown + projected appreciation supports a ~$60k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: 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?
• 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?
• 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?
• 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.