807 State Route DD

Fayette, MO 65248

$12,345D

3 bd · 2.0 ba · 1,750 sqft · Built 1983 · Other · Pending · 22 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,468/mo
• Mortgage (P&I): −$65
• Tax + insurance: −$21
• HOA: −$0
• Vac / Maint / Mgmt: −$308
• Net cashflow: $1,075/mo
• Annual: $12,895/yr
• Cap rate: 110.75%
• Cash-on-cash: 373.06%
• DSCR: 17.60
• 1% rule: 11.89%
• Cash to close: $3,457

Investor read

• This is a 3-bed/2.0-bath other listed at $12k.
• At list price, monthly cash flow is $1k ($13k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $12k).
• It's been on market 22 days — a 2% lower offer ($12k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $12k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $86 of loan paydown is wiped out by about $370 of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#133 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B+; Watch: employment C-, amenities F, commute F.
• Fayette R-III (town): math 27% / reading 40% proficiency, ranked #238 of 324 in MO (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Fayette High (math 5% / reading 44%, grade F, #436 of 521 statewide, top 85%, 189 students, 39% FRL) — zoned schools at 39% FRL track the district average.
• Market conditions: 44 active listings in the ZIP; 9 units permitted in Howard County in 2024 (5 in 5+ unit buildings).
• Howard County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $3k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.