13416 Colorado Rd

Dixon, MO 65459

$175,000D

3 bd · 1.5 ba · 1,300 sqft · Built 1975 · Other · Active · 85 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $984/mo
• Mortgage (P&I): −$918
• Tax + insurance: −$137
• HOA: −$0
• Vac / Maint / Mgmt: −$207
• Net cashflow: $-277/mo
• Annual: $-3,323/yr
• Cap rate: 4.39%
• Cash-on-cash: -6.78%
• DSCR: 0.70
• 1% rule: 0.56%
• Cash to close: $49,000

Investor read

• This is a 3-bed/1.5-bath other listed at $175k.
• At list price, monthly cash flow is $-277 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $126k (28.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $98k (43.8% below list).
• It's been on market 85 days — a 6% lower offer ($164k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $98k (43.8% below list) — sets the bar for 1% rule.
• In year one you build about $10k of equity ($1k loan paydown + $9k appreciation (5.2% local appreciation)).
• Location reads 61/100 on livability (#445 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Dixon R-I (rural): math 23% / reading 33% proficiency, ranked #280 of 324 in MO (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Dixon Elem. (math 42% / reading 47%, grade F, #413 of 1,115 statewide, top 42%, 394 students, 55% FRL); Dixon Middle (math 12% / reading 17%, grade F, #362 of 391 statewide, top 93%, 227 students, 55% FRL); Dixon High (math 5% / reading 32%, grade F, #481 of 521 statewide, top 92%, 277 students, 46% FRL).
• Market conditions: 78 active listings in the ZIP; 62 units permitted in Pulaski County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts; this cycle's ask has dropped $22k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 4, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.4% vs local median 3.2% in Dixon — 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 85 days. Have you received any prior offers? Is the seller open to a 44% concession, seller financing, or rate buy-down credit?
• Built in 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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?