408 E Main Unit 1 & 2 St

Smithville, MO 64089

$359,000D-

2 bd · 1.0 ba · 2,352 sqft · Built 1992 · MultiFamily · Active · 62 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,400/mo
• Mortgage (P&I): −$1,883
• Tax + insurance: −$510
• HOA: −$0
• Vac / Maint / Mgmt: −$504
• Net cashflow: $-497/mo
• Annual: $-5,958/yr
• Cap rate: 4.82%
• Cash-on-cash: -5.26%
• DSCR: 0.77
• 1% rule: 0.67%
• Cash to close: $100,520

Investor read

• This is a 2 × 2-bed/1-bath units multifamily listed at $359k.
• At list price, monthly cash flow is $-497 ($-6k/yr) — negative. Per door: $-248/mo.
• To cash-flow at today's rent, offer at most $271k (24.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $240k (33.1% below list).
• It's been on market 62 days — a 6% lower offer ($337k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $240k (33.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#230 in MO) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Smithville R-II (suburban): math 53% / reading 54% proficiency, ranked #20 of 324 in MO (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 12% free/reduced lunch — higher-income household profile.
• Watch-outs: flood insurance adds $56/mo.
• Market conditions: 156 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 341 units permitted in Clay County in 2024 (40 in 5+ unit buildings).
• Clay County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 27y ago; this cycle's ask has dropped $56k (13%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.8% vs local median 3.3% in Smithville — 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 62 days. Have you received any prior offers? Is the seller open to a 33% 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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 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?