1018 4th St

West Plains, MO 65775

$69,000D+

2 bd · 2.0 ba · 908 sqft · Built 1962 · Other · Pending · 121 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $625/mo
• Mortgage (P&I): −$362
• Tax + insurance: −$536
• HOA: −$0
• Vac / Maint / Mgmt: −$131
• Net cashflow: $-404/mo
• Annual: $-4,852/yr
• Cap rate: 7.27%
• Cash-on-cash: 3.48%
• DSCR: 1.15
• 1% rule: 0.91%
• Cash to close: $19,320

Investor read

• This is a 2-bed/2.0-bath other listed at $69k.
• At list price, monthly cash flow is $-404 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $5k (93.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $62k (9.4% below list).
• It's been on market 121 days — a 12% lower offer ($61k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $5k (93.0% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $477 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#34 in MO, #2,977 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A-; Watch: crime C-, commute C-, amenities D.
• West Plains R-VII (rural): math 36% / reading 46% proficiency, ranked #152 of 324 in MO (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: West Plains Elem. (math 41% / reading 40%, grade F, #525 of 1,115 statewide, top 47%, 766 students, 66% FRL); West Plains Middle (math 33% / reading 39%, grade F, #237 of 391 statewide, top 61%, 611 students, 58% FRL); West Plains Sr. High (math 27% / reading 65%, grade D-, #170 of 521 statewide, top 33%, 1,162 students, 42% FRL) — zoned schools at 55% FRL track the district average.
• Watch-outs: flood insurance adds $460/mo.
• Market conditions: 320 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 53 units permitted in Howell County in 2024 (0 in 5+ unit buildings).
• Howell County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); moderate wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.3% vs local median 3.1% in West Plains — 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 121 days. Have you received any prior offers? Is the seller open to a 93% concession, seller financing, or rate buy-down credit?
• Built in 1962 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?
• 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?