26020 Sharon Ln

Warsaw, MO 65355

$219,900F

2 bd · 2.0 ba · 720 sqft · Built 2004 · Other · Pending · 969 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,117/mo
• Mortgage (P&I): −$1,153
• Tax + insurance: −$184
• HOA: −$21
• Vac / Maint / Mgmt: −$234
• Net cashflow: $-476/mo
• Annual: $-5,715/yr
• Cap rate: 3.69%
• Cash-on-cash: -9.28%
• DSCR: 0.59
• 1% rule: 0.51%
• Cash to close: $61,572

Investor read

• This is a 2-bed/2.0-bath other listed at $220k.
• At list price, monthly cash flow is $-476 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $136k (38.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $112k (49.2% below list).
• It's been on market 969 days — a 12% lower offer ($194k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $112k (49.2% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($2k loan paydown + $12k appreciation (5.5% local appreciation)).
• Location reads 63/100 on livability (#332 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D-, amenities F, commute F.
• Warsaw R-IX (rural): math 30% / reading 42% proficiency, ranked #222 of 324 in MO (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: John Boise Middle School (math 37% / reading 40%, grade F, #202 of 391 statewide, top 54%, 278 students, 99% FRL); Warsaw High School (math 27% / reading 52%, grade F, #247 of 521 statewide, top 55%, 403 students, 99% FRL) — zoned schools average 99% FRL vs 61% district-wide (38 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 275 active listings in the ZIP; 9 units permitted in Benton County in 2024 (0 in 5+ unit buildings).
• Benton County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 3y ago; this cycle's ask has dropped $30k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 3, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 969 days. Have you received any prior offers? Is the seller open to a 49% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 F-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 D 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?