605 S Washington St

Clinton, MO 64735

$48,000B-

2 bd · 1.0 ba · 876 sqft · Built 1905 · Other · Active · 401 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $833/mo
• Mortgage (P&I): −$252
• Tax + insurance: −$33
• HOA: −$0
• Vac / Maint / Mgmt: −$175
• Net cashflow: $374/mo
• Annual: $4,485/yr
• Cap rate: 15.64%
• Cash-on-cash: 33.37%
• DSCR: 2.48
• 1% rule: 1.74%
• Cash to close: $13,440

Investor read

• This is a 2-bed/1.0-bath other listed at $48k.
• At list price, monthly cash flow is $374 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($833 rent vs $48k).
• It's been on market 401 days — a 12% lower offer ($42k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $42k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $332 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 56/100 on livability (#683 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Clinton (town): math 32% / reading 36% proficiency, ranked #235 of 324 in MO (top 72%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Henry Elem. (377 students, 54% FRL); Clinton Middle (math 27% / reading 26%, grade F, #313 of 391 statewide, top 81%, 356 students, 45% FRL); Clinton Sr. High (math 32% / reading 52%, grade F, #218 of 521 statewide, top 45%, 604 students, 34% FRL) — zoned schools at 44% FRL track the district average.
• Watch-outs: built in 1905 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 188 active listings in the ZIP; 15 units permitted in Henry County in 2024 (0 in 5+ unit buildings).
• Henry County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 4y ago; this cycle's ask has dropped $17k (26%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 15.6% vs local median 2.9% in Clinton — 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

• It's been on market 401 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1905 — 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.
• 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?
• 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.